TMI Blog2022 (7) TMI 751X X X X Extracts X X X X X X X X Extracts X X X X ..... lies, supplied in conjunction with each other by a taxable person for a single price, which does not constitute a composite supply. Thereby, the supply satisfies all the pre-requisites to be termed as a Mixed Supply . The decisions relied upon by the applicant are distinguishable to the facts of the case on hand - the said supply is held to be a mixed supply. - AAAR.COM/04/2021, Order-in-Appeal No. AAAR/02/2022 - - - Dated:- 21-6-2022 - NEETU PRASAD AND B.V. SIVANGAKUMARI, MEMBER (Passed under Section 101 (1) of the Telangana Goods and Services Tax Act, 2017) Preamble 1. In terms of Section 102 of the Telangana Goods Service Tax Act, 2017( the Act , in short), this Order may be amended by the Appellate Authority so as to rectify any error apparent on the face of the record, if such error is noticed by the appellate authority on its own accord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant within a period of six months from the date of order. Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 with Irrigation department of State Government of Karnataka on 12-10-2018 vide reference no. KBJNL/DDN/PB-1/TND/SCADA P-2/481 Do not fall under HSN code 8607 3) 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. The clarification can t be issued on supplies made in Karnataka. The present appeal challenges the ruling given on question (1). For the 2 nd 3rd question, the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g is not justified in treating Supplies made against purchase order of Integral Coach Factory as Mixed Supply when items are supplied at Individual separate prices with individual separate HSN code and GST rates. The very basic condition of Mixed supply is that two or more items to be supplied for consolidated single price without assigning individual price for each item is not meeting in their case as each item has its own individual price, HSN code and GST Rate hence, their supplies in present case cannot be treated as Mixed Supply. When the goods and services are supplied separately at individual price, then it shall neither be a mixed supply nor a composite supply. It has to be segregated/independent supply with applicable HSN code and GST rates to each item . 3. In this connection the appellant contended that Mixed supply is combination of more than one individual supplies of goods or services or any combination thereof made in conjunction with each other for a single price, which can ordinarily be supplied separately. For example, a shop keeper selling storage water bottles along with refrigerator. Bottles and the refrigerator can easily be priced and sold separately. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... milar to their case, since they also supplying two or more items by invoicing separately for each item mentioning the individual price to each items along with applicable HSN code and GST rate to each individual item. Hence, their supplies are neither a composite supply nor mixed supply but separate individual/segregated supplies with applicable HSN code and GST Rate to each item individually. 6. Hence it was submitted that Authority Advance Ruling is not justified in treating Supplies made against purchase order of Integral Coach Factory as Mixed Supply and requests Hon ble Appellate Authority of Advance Ruling to allow their appeal and modify the order by classifying the referred supply of items as Separate/Segregated/Independent Supply with applicable HSN code and GST rates to each item. 6. Personal Hearing 6.1 In terms of Section 101(1) of the Act, the appellant was given personal hearing, in virtual mode on31-01-2022 Sri K. Lokesh, CA AR appeared for the appellant. He reiterated the written submission given in their appeal and requested to consider the same. 7. Discussion, Finding and Determination of the Appeal: We have gone through the contentions rais ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll not be a mixed supply if these items are supplied separately; The above illustration gives an indication of the intent of the legislature, viz. it makes it clear that what is to be treated as mixed supply is a combination of supplies wherein each of the items forming part of the supply can be supplied separately and are independent of each other, but are supplied in conjunction with each other. For a supply to be termed as mixed supply, the determining factors are: (i) There should be two or more individual supplies (ii) The supplies should be made in Conjunction with each other (iii) The supply should be made for a single price by a taxable person (iv) Such supply does not constitute a Composite Supply. In the present case ,the applicant is involved in the supply of design , development , manufacture , supply, testing and commissioning of 152 sets of 25 KV AC micro processor controlled IGT based 3 phase propulsion system and equipment to rdso specification . As per the Purchase Order PO No 08/17/1119/1101/F the price of each set was quoted to be Rs.4,77,82,716-00. This price is for design, development, manufacture, supply, testing and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioning of each set. In other words, though item wise pricing is adopted in their Annexures, but the price still remains for the whole gamut of supply of goods and supply of services entrusted to the applicant. Price break up doesn t necessarily imply that the items are being supplied separately for separate prices. Here, though the supplies are capable of being made individually, the essential concomitant of the present agreement is that they should be supplied in conjunction with each other to function as one complete rake set. The schedule of delivery mentions that the entire set is to be delivered at once but not the individual items separately. Even as per terms of payment, payment is done for the entire set and not individual items, implying the supply is being made for single price per unit. Further, this supply cannot be termed a composite supply because the supplies involved are not naturally bundled and only one of the supply cannot be determined as a principal supply. Hence, in this case there are two or more individual supplies, supplied in conjunction with each other by a taxable person for a single price, which does not constitute a composite supply. Thereb ..... X X X X Extracts X X X X X X X X Extracts X X X X
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