TaxTMI 
TaxTMI 
2018 (11) TMI 1505
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssion and distribution networks in the urban areas; b. Metering of distribution transformers/feeders/consumers in the urban areas; c. Rooftop Solar Projects, Installation of solar panels and smart / net meters as a mandatory component under IPDS; d. Counting IT enablement of distribution sector and strengthening of distribution network. III. Chhattisgarh State Power Distribution Company Limited (hereinafter referred to as 'CSPDCL') have been entrusted to execute the Project i.e. Implementation of IPDS scheme for a. Strengthening and augmentation for sub-transmission & distribution infrastructure and b. Electrification Work in 15 Circles (through eight packages) in Chhattisgarh State on behalf of Government of Chhattisgarh. IV. CSPDCL had floated a tender to award the aforesaid specified scope of work and after successful bidding M/s. A2Z has been awarded the work contract services from CSPDCL. 3. Contention of the Applicant : (i) that, since the services provided by it are in the nature of composite supply of work contract involving supply of goods and services therefore the services provided w....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 100% holding is of Chhattisgarh Sate Government. (iv) that, CSPDCL is implementing this work on behalf of Government of Chhattisgarh. This IPDS scheme has been sanctioned by Ministry of power vide office memorandum no 26-1-2014 - APDRP to be implemented in all the States of India. So to implement this policy in Chhattisgarh, the Government of Chhattisgarh has provided the work to CSPDCL. (v) that, the work contract services provided by the Applicant to CSPDCL is meant predominantly for use other than for commerce industry, or any other business or profession. The IPDS scheme has been formulated to keep pace with the increase demand of electricity as electricity is the most important factor in the economic growth of any country and the most critical segment of power sector chain including Generation, Transmission and Distribution, is the Distribution Sector. The funds for IPDS scheme are provided by Central Government to Chhattisgarh Government in the form Of subsidy and by Chhattisgarh Government by arranging loan from FIs/ Bank. Further, that even after completion of this project no recovery will be made from any consumer as this IPDS scheme is not for ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... as per provisions of Notification No. 24/2017-CentraI Tax (Rate), dated 21-9-2017 and Notification No. 31/2017-Central Tax (Rate), dated 13-10-2017. 6. The legal position, Analysis and Discussion :- 6.1 The provisions for implementing the CGST Act and CGGST Act 2017 are similar. Now we sequentially discuss the provisions that are applicable in the present case. 6.2 The primary issue that needs decision here so as to arrive at applicability or otherwise of the benefit of the conditional exemption Notification referred to above, in the context of the advance ruling sought by the applicant M/s. A2Z Infra Engineering Ltd., Raipur revolves around two vital aspects, namely : (a) whether, CSPDCL is a Government authority /Government entity ? and, if so (b) whether, the works contract services provided by M/s. A2Z Infra Engineering Ltd. Raipur to CSPDCL qualifies being the work predominantly for use other than for commerce, industry or any other business of profession. 6.3 Close scrutiny of the balance sheet of CSPDCL reveals that 100% equity of CSPDCL as held by CSPDHL (Chhattisgarh State Power Distribu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tification, in the Table, against serial number 3, for item (vi) in column (3) and the entries relating thereto, in columns (3), (4) and (5), the following shall be substituted namely :- (3) 4 5 "(vi) Services provided to the Central Government; State Government Union Territory, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair. Maintenance, renovation, or alteration of - (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession : (b) a structure meant predominantly for use as (i) an educational, (ii) a clinical, or (iii) an art or cultural establishment; or (c) a residential complex predominantly meant for selfuse or the use of their employees or other persons specified in paragraph 3 of the Schedule Ill of the Central Goods and Services Tax Act, 2017 - 6 - (vii) Construction services other than (i), (ii), (iii), (iv), (v) and (vi) above. 9 - 2. This notification shall be deemed to have come into force with effect from 21-9-2017. (iii) Similarly the principal Notificatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ect reports, diagnose operational difficulties and weaknesses, and advise on the remedial measures to improve and modernize existing stations and facilitate and to undertake for and on behalf of others the setting up of Electric power plants and generally work for the efficient and economics management of the resources available. 6. Purchase and sale of Electrical energy and co-ordinate with other companies - To carry on the business of purchasing, selling, importing, exporting, wheeling and trading of power including finalization of tariff, billing and collection thereof. - To execute Power Purchase Agreements with Transmission Companies, Generating Companies, Central and State generating stations. Regional Electricity Boards, other State, Companies and Persons. - To execute agreements for sale of Power of other distribution or trading companies and other persons and to coordinate, aid and advise on the activities of other companies and concerns, including subsidiaries, associates and affiliates engaged in generation, transmission, distribution, supply and wheeling of electrical energy. B. Objects incidental or ancillary to the attainment of the main objects : 4....