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TMI Blog2023 (2) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant submits that he has been rewarded work order by the Water Resources Department, Government of Andhra Pradesh for desilting of the foreshore of Prakasam Barrage from KM 7.500 to KM 8.400 in Krishna River and the applicant has entered into a contract with the concerned department of Government of Andhra Pradesh for the execution of above-mentioned Works Contract. 1.3 The applicant submits that the said work includes dredging in the foreshore of Prakasam Barrage with dredger and depositing materials in the area of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Article 77 of the constitution, all executive actions of the Government of India shall be expressed to be taken in the name of the President. Therefore, the Central Government means the President and the officers subordinate to him while exercising the executive powers of the Union vested in the President and in the name of the President. Similarly, as per clause (60) of the section 3 of the General Clauses Act, 1897, the 'State Government' in respect of anything done after commencement of the Constitution, shall be the Governor in a state and in a Union Territory, the Central Government. As per article 154 of the Constitution, the executive power of the state shall be vested in the Governor and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, as per article 166 of the Constitution, all executive actions of the Government of State shall be expressed to be taken in the name of the Governor. Therefore, State Government means the Governor or the officers subordinate to him who exercise the executive powers of the State vested in the Governor and in the name of the Governor. 2.2 The applicant sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing services to the Government of Andhra Pradesh and the supply would attract tax @ 5% vide serial number 3 for the item (vii) mentioned in Notification no. 39/2017 Integrated Tax (Rate) dated 13th October, 2017 up to 17th July, 2022 and thereafter the supply would be taxable @ 12% vide Notification no. 03/2022 Integrated Tax (Rate) dated 13th July, 2022. 2.5 The applicant, in support of his contention that the supply being undertaken by him would be taxable @ 5%, has placed reliance on the following Advance Rulings pronounced by the West Bengal Authority for Advance Ruling: * Order No. 07/ WBAAR/2020-21 dated 10/08/2020 in case of Reach Dredging Limited [Case No. 08 of 2020] * Order No. 08/ WBAAR/2020-21 dated 10/08/2020 in case of Reach Dredging Limited [Case No. 07 of 2020] * Order No.16/WBAAR/2020-21 dated 05/02/2021 in case of RDL-ZYCHL-JV [Case No.18 of 2020] 3. Submission of the Revenue The submission of the officer concerned from the revenue may be summarized as under: 3.1 Entry No. 3 (vii) of the Notification provides that a supply is taxable @ 5% if the contract is a composite supply of works contract as defined under section 2(119) of the GST Act, involving ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horised representative of the applicant furnishes copy of an agreement bearing No. 21/SE/2021-22 dated 10.08.2021 in support of work for 'Desilting of Slit from the foreshore of Prakasham Barrage from Km 7.500 to Km 8.400 in Krishna River' along with copy of the tender notice bearing number 19SE/2020-21 dated 07.01.2021 issued by the Water Resource Department, Government of Andhra Pradesh. As per the tender notice, all construction materials like stone, sand, cement, steel, hume pipes, bitumen etc. shall be procured by the contractor at his own cost wherefrom it appears that the instant work, which is predominantly supply of services, also involves transfer of property in goods. The work, as we find from the documents produced, is aimed at the improvement of immovable property which involves both supply of services and goods in the course of its execution. The instant supply therefore qualifies as 'works contract' as defined in clause (119) of section 2 of the GST Act. 4.5 Now, to decide whether the activities being undertaken by the applicant falls under the category of earth work or not, we may refer to Para 12.1 of the Advance Ruling pronounced by the Jharkhand Authority for Ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of dredging and earthwork excavation which is pure service work and the cost of material transferred and consumed for execution and completion of the works contract is less than 25 (twenty five) percent of the total agreement value." 4.7 On due consideration of the cost of the materials involved in the instant supply, as certified by the Executive Engineer, Krishna Central Division, Vijayawada, we are of the opinion that the work being undertaken by the applicant is a composite supply of works contract which predominantly involves earth work i.e., constituting more than 75 per cent. of the value of the works contract as specified under serial number 3(vii) of Notification No. 39/2017- Integrated Tax (Rate) dated 13.10.2017. 4.8 Finally, we take the issue to decide whether the supply being provided by the applicant to the Water Resource Department, Government of Andhra Pradesh would be considered as supply to the State Government so as to cover under serial number 3 (vii) of the Notification No. 39/2017- Integrated Tax (Rate) dated 13.10.2017. In this regard, Question No. 7 of the FAQ on Government Services, issued by the Central Board of Indirect Taxes & Customs, may be referred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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