GST on transmission line shifting turns on asset transfer and supply; immovable property and separate charges were treated differently.

Shifting, dismantling and raising existing transmission lines for highway widening was not treated as an asset transfer or taxable supply under GST because the work did not involve transfer of goods or services by the applicant to the electricity authority in the manner required for consideration-based taxation. The cost of the modification was borne by the applicant for safe clearances in highway development, while supervisory and shut-down charges levied by the electricity authority remained separately taxable. The constructed transmission lines were treated as immovable property, so the deeming provision for transfer of business assets did not apply. GST was therefore not payable on the cost estimate basis.

---

---

Issues: Whether the shifting and raising of transmission lines by the applicant involved an asset transfer constituting a supply leviable to GST.

Analysis: The activity involved shifting, dismantling and raising of existing transmission lines for highway widening. The arrangement did not show any transfer of assets by the applicant to the electricity authority in a manner that would amount to a supply. The work was undertaken for safe clearances in the course of highway development, while the applicant bore the costs of the modification. The supervisory and shut down charges charged by the electricity authority were separately taxable, but the larger cost of the work did not represent consideration for any supply by the applicant. The constructed transmission lines were treated as immovable property and therefore did not fall within the definition of goods. Since the statutory entry dealing with transfer of business assets applies only where goods forming part of business assets are transferred or disposed of, it had no application here.

Conclusion: The shifting and raising of transmission lines did not constitute an asset transfer or supply leviable to GST, and GST was not payable on the cost estimate basis.

Ratio Decidendi: An activity is taxable as a supply only when it involves a transfer of goods or services for consideration in the course of business, and the deeming provision for transfer of business assets applies only to goods, not immovable property.

---