Contract not covered under specific tax regulations, excluded from "Earth Work" classification.

The contract in question was determined not to be covered under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018 - Central Tax (Rate) dated 25/01/2018. Additionally, it was held that the contract did not fall under the term "Earth Work" as per SI No. 3, Chapter No. 9954, Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017. The meaning of "Earthwork" under SI No. 3, Chapter No. 9954 was not addressed due to the contract not meeting the criteria for earthwork classification.

---

---

Issues Involved:

1. Whether the contract is covered under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018 - Central Tax (Rate) dated 25/01/2018.
2. Whether the contract is covered under the term "Earth Work" and therefore covered under SI No. 3, Chapter No. 9954 as per Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017.
3. If covered under SI No. 3, Chapter No. 9954 as per Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017, what is the meaning of "Earthwork"Rs.

Detailed Analysis:

Issue 1: Coverage under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018 - Central Tax (Rate) dated 25/01/2018

The applicant sought to determine if their contract falls under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018. The concerned officer argued that the work order, awarded in 2008-2009, primarily involves earthwork, which may now be completed, leading to the value of supply of goods constituting more than 25% of the composite supply. Moreover, the Godavari Marathwada Irrigation Development Corporation is a government undertaking, not a government entity. The authority concluded that the contract is not covered under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018.

Issue 2: Coverage under the term "Earth Work" as per SI No. 3, Chapter No. 9954, Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017

The applicant contended that their work order, consisting predominantly of earthwork (92.66% of total work), should be covered under SI No. 3, Chapter No. 9954, as per Notification No. 31/2017. The authority examined the definition of "earthwork" from various dictionaries and sources, which generally refer to constructions made from earth, such as embankments or fortifications. The authority found that the construction of a tunnel and its allied works does not fall under the definition of earthwork as contemplated by entry no. 3(vii). Therefore, the contract is not covered under SI No. 3, Chapter No. 9954.

Issue 3: Meaning of "Earthwork" under SI No. 3, Chapter No. 9954

Given the negative answer to Issue 2, the question regarding the meaning of "Earthwork" under SI No. 3, Chapter No. 9954 was not addressed.

Conclusion:

1. The contract is not covered under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018 - Central Tax (Rate) dated 25/01/2018.
2. The contract is not covered under the term "Earth Work" and therefore not covered under SI No. 3, Chapter No. 9954 as per Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017.
3. The question regarding the meaning of "Earthwork" was not answered due to the negative answer to Issue 2.

---