TMI Blog2024 (1) TMI 1093X X X X Extracts X X X X X X X X Extracts X X X X ..... ernment of NCT of Delhi, New Delhi, wherein he has certified that the works contract constitutes mainly of dredging and earthwork excavation which is pure service work and the cost of material transferred and consumed for execution and completion of the work contract is less than 5 (five) percent of the total work order value, if any required . This clearly establishes that there is an element of goods also in the supply, although in a small percentage - the instant supply is found to be a composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply. Entry at Sl No. 3A of Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017, as amended [Sl. No. 3A of Notification No. 12/2017-Central Tax (rate) dated 28.06.2017, as amended] describes that Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suitable and adequate and latest technology machinery without obstructing the flow of drain. This also includes leveling and dressing of stacking area on the bank/ berm and construction of dykes within the reach if required for drying, disposal of excavated silt/ earth/ manure/ sludge etc. within the reach as per directions of Engineer-in-Charge within lead of 08 kms. The desilted/ excavated material is to be taken away by agency for environmental safe disposal at his direction with all lead and lift. 1.4 The applicant further submits that that the contract constitutes mainly 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 5 (five) percent of the total work order value. 1.5 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following questions vide serial number 14 of the application in FORM GST ARA-01: 1) Whether Government of Delhi Irrigation and Flood Control Department comes under the purview of Union Territory? 2) Will our supply be covered under Sl. No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... struction of a new drain called Supplementary Drain. (c) To provide drainage to Delhi area through various trunk storm-water drains having more than 1000 cusecs capacity. (d) Effective monitoring of the flood situation in the river basin during floods and to take all precautionary/ preventive measures to avoid any untoward situation including emergent flood protection/ flood fighting measures, if such a situation arises. (e) To provide irrigation facilities to the cultivators of Delhi through State Tube Wells, and to provide treated effluents water (available from various Sewerage Treatment Plants at Okhla, Keshopur Coronation Pillar) for farming. 2.3 Besides the above main functions, Irrigation Flood Control Department is also entrusted with planning and execution of various types of civil works to be executed on behalf of different Departments of Government of Delhi such as Rural Development, SC/ST works, DUDA, Panchayat, Trans Yamuna Area Development Board, U.D. Deptt., Wild Life and Forest, Horticulture etc. 2.4 According to the applicant, the scope of work falls within the ambit of matter listed at Sl. No. 29 of Schedule Eleven of Article 243 G of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uitable, adequate and latest technology machinery without obstructing the flow of drain. This also includes leveling and dressing of stacking area on the bank/ berm and construction of dykes within the reach if required for drying, disposal of excavated silt/ earth/ manure/ sludge etc. within the reach within lead of 08 kms. The desilted/ excavated material is to be taken away by agency for environmental safe disposal with all lead and lift. 4.3 The applicant, in the instant case, undertakes the work of desilting and cleaning of Najafgarh Drain. We find from the website of Wikipedia that the Najafgarh drain or Najafgarh nalah (nalah in Hindi means rivulet or storm water drain), which also acts as Najafgarh drain bird sanctuary, is another name for the northernmost end of River Sahibi, which continues its flow through Delhi, where it is channelized, and then flows into the Yamuna. Basis on above, we find it relevant to examine first whether the activities of desilting and cleaning of the drain falls under the purview of Public health sanitation conservancy and solid waste management listed at serial number 6 of the Twelfth Schedule [Article 243W of the Constitution (Seventy-Fou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notification No. 9/2017-Integrated Tax (Rate) dated 28.06.2017, as amended [Sl. No. 3A of Notification No. 12/2017-Central Tax (rate) dated 28.06.2017, as amended] describes that Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution is exempted. We therefore hold that the instant supply made by the applicant to Government of NCT of Delhi shall be covered under the aforesaid entry. In view of the above discussions, we rule as under: RULING Supply of services being undertaken by the applicant for removal of hump (silt/ earth/ manure/ sludge etc.) by dredging at Najafgarh Drain as awarded by the Irrigation and Flood Control Department, Government of Delhi shall be covered under Sl. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated 28.06.2017 and therefore sha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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