TaxTMI 
TaxTMI 
2018 (11) TMI 1349
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....by him in Form ARA-01, the issue raised by the applicant is neither pending for proceedings nor proceedings were passed by any authority. Based on the above observations, the application is admitted to pronounce advance ruling. 1. SUBMISSION AND INTREPRETATION OF THE APPLICANT: a. The applicant is engaged in providing the comprehensive water services to the clients who may be both private clients as well governmental. That the currently the applicant is in the process for bidding for tender floated by the PHED, a unit of Government of Rajasthan for designing, providing, installation, commissioning, operation and maintenance of solar based bore well water pumping systems, Reverse osmosis plant and operation and maintenance of Fluoride Control project on ESCO and O & M contract. b. The terms and scope of the contract combines ESCO Model and O&M work. That the activities under ESCO model and O & M contract are so closely linked in a manner that they form a single indivisible supply. The driving factors are: • A single tender shall be floated for Operation and Maintenance of Fluoride Control Project on ESCO Cum O&M Contract where the preamble of scope specifies th....
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....hing, distempering etc. to the switchyard stuff thrice during the entire contract period. Storage Tanks (CWR) He shall also be responsible for painting, color/ white washing, distempering etc. to the CWR, compound wall, store etc thrice during the entire contract period. Headworks Campus Contractor shall maintain whole campus neat and clean by removing unwanted trees, bushes, vegetation etc, pruning of trees watering to sapling and maintenance of lawn/ garden, plantation of new trees and saplings, illumination in the whole campus, maintain all internal and service roads, proper drainage system etc. SCADA The scope of work includes design the system based on re-engineered processes and best fit automation interventions to get transparent real time data and remote monitoring. O&M work The scope of work of O&M contract includes operation and maintenance of rising mains of RWSS/C1usters, OHSR and water treatment plant at Baghera. i. It is understood based on the scope of work detailed above that ESCO model requires improvement of the whole water supply system involving pump houses, pumping stations, transmission lines, switchyards, storage tanks and headwork ....
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....properties for which improvement works has been assigned like pump houses, storage tanks, headworks campus etc. cannot be moved from one site to another. All the components of the pumping system are erected at the prescribed location and permanently attached to the earth and they cannot be dismantled and reassembled as such dismantling may cause substantial damage to the system and its components. Thus, according to applicant the property of improvement is an immovable property and thus the given work should be treated as works contract. 2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT Whether the activity of O & M of Fluoride control project on ESCO Model and O & M work supply of goods or supply of services and what shall be the rate of GST on it? 3. PERSONAL HEARING (PH) The PH was held on 22.10.2018 at Room No. 2.22, NCRB, Statue Circle, Jaipur. The applicant in his original application has submitted request for advance ruling on three questions. The applicant has submitted a letter in PH requesting to withdraw the question 1 and 2 due to mutually exclusive and independent nature of all three questions. Accordingly, this advance ruling is solely for question num....
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....trical equipment, capacitor banks etc. Repair/ remodel of pump foundation according to new pump sets or as per requirement. Extension of pump house if required to remodel the configuration of pump sets or as per site condition. The supply and installation of new pumping machinery and other equipments shall be done as per best engineering practice. b. The operation and maintenance work shall be carried out of all the electrical and mechanical instruments, pumping machinery etc. c. The pumping station and its surrounding shall be kept clean and in dry condition, properly ventilated and illuminated. For the purpose of illumination, replacement of fitting/ fixtures shall be done by the contractor, if required. d. He shall be responsible for painting, color/ white washing, distempering etc. to the pumping station building, thrice during the entire contract period. e. Transmission Pipelines The contractor shall be responsible for Patrolling, operation and maintenance of the pipelines, repairing of leakages of pipelines, replacement of burst pipes, repairing of appurtenances of pipelines like air valves, scour valves air vessels system, intermediate OHSR (for vacuum filling....
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....y is a movable or immovable property. To decide whether a property is movable or immovable, the given terms have not been defined under the Act and hence the reliance needs to be placed on other laws and judicial precedents. 9. Under the General Clauses Act 1897 the term immovable property has been defined under Section 3(26) as "immovable property" shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth: 10. As per the definition the term permanently fastened or attached to earth can be treated as immovable property. Any attachment with earth which is temporary in nature or can be shifted from part of earth to another without causing substantial damage to it cannot be treated as immovable property. 11. On the given issue, CBEC has also clarified in its circular number 58/ 1/2002-CX dated 15/ 1/2002 where in para (e) it was clarified that;- If items assembled or erected at site and attached by foundation to earth cannot be dismantled without substantial damage to its components and thus cannot be reassembled, then the items involved not be considered as moveable and will, therefore, n....
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....tion. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds and electric crematoriums. 15. Cattle ponds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. On perusal of said Schedule it is evident that under point number 5, the water supply for domestic, industrial and commercial purposes is responsibility of Municipality. It is pertinent to note that given activity of ESCO plant redevelopment is in relation to clean drinking water facility to the citizens. Thus, it is easily ascertained that the applicant is engaged in a Work Contract (Composite supply) to a Governmental Authority. 15. The rate of tax in given service shall be determined in accordance with the Notification No 11/2017-CT (Rate) dated 28.06.2017, as amended from time to time. On perusal of said Notification ....