TaxTMI 
TaxTMI 
2018 (12) TMI 533
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.... such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGST Act would be mentioned as being under the "GST Act". 02. FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- A. STATEMENT OF FACTS HAVING A BEARING ON THE QUESTIONS RAISED 1. Cable Corporation of India Limited (hereinafter referred to as 'Applicant') having its corporate head office at, Laxmi Building, 4th Floor, 6, Shoorji Vallabhdas Marg, Ballard Estate, Mumbai, Maharashtra 400001, is a leading manufacturer and distributor of a wide range of power and control cables in India. 2. The Applicant was registered under the erstwhile tax regime, and was discharging excise duty, service tax and value added tax (VAT) on the manufacture, on commission and sale of the products, as applicable. 3. Under the current regime, the Applicant is registered as per the provisions of the GST Laws. 4. The Applicant is engaged in the work of Supply, Laying and Terminating of 220....
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....the Notification No. 12/2017 - Central Tax (Rate) dated 28th June, 2017. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW AND/OR FACTS, AS THE CASE MAY BE, IN RESPECT OF QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED. B. QUESTION REQUIRING ADVANCE RULING The questions on which Advance Ruling is sought by the Applicant is as under: B.1 Whether the supply of transportation services, rendered by the Applicant, will be exempt from the levy of GST in terms of Sl. no. 18 of the Notification No. 12/2017 - Central Tax (Rate) dated 28th June, 2017. C. APPLICANT'S INTERPRETATION THE SUPPLY OF TRANSPORTATION SERVICES BY THE APPLICANT SHALL BE EXEMPT FROM THE LEVY OF GST AS PER NOTIFICATION NO. 12/2017 CENTRAL TAX (RATE) DATED 27.05.2017 Transportation charges collected from the customer is covered by the exemption provided under Sl. No. 18 of the Notification No. 12/2017 - Central Tax (Rate) C.1 Sl. No. 18 of the Notification No. 12/2017 - Central Tax (Rate) dated exempts the supply of transportation of goods services by a supplier, not being a GTA or courier agency, from the levy of GST. The relevant portion maybe extracted as follows: Sl.No. Chapter, Section, Heading,....
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....ces: a. Transportation and Insurance charges; b. Installation charges; and C. Training charges C.7 Now as per the above discussed Notification, the exemption available is only with respect to the supply of transportation of goods services by a supplier, not being a GTA or courier agency, from the levy of GST. Thus, for determining the applicability of the notification, it is to necessary to examine whether all the supply of services provided for in the services contract will constitute a 'composite supply' or not. C.8 The term 'composite supply' has been defined under section 2(30) of the CGST Act. The relevant portion of the provision maybe extracted as follows for easy reference: 2. Definitions. (30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; C.9 Thus, 'composite supply means a supply of two or more taxable supplies of goods or services or both which are: d. naturally bundled; and e. suppl....
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....ax, Mumbai reported [2007 (6) STR 3 (SC)] = 2007 (1) TMI 91 - SUPREME COURT. The contract under consideration was a turnkey agreement between the parties which separately provided for the offshore supply of goods and service, onshore supply of goods and services and the services of construction and erection. It was held by the Hon'ble Supreme Court that very fact that in the contract, the supply segment and Service segment have been Specified in different parts of the contract is a pointer to show that the liability of the Appellants thereunder would also be different. C.15 In the light of the above observations, the following points maybe noted with respect to the instant scenario: a. The supply of services under consideration are mutually exclusive and independent and are not intrinsically linked to each other in any manner. b. The services contract provides for supply of transportation services, installation Services and testing services along with separate considerations for each of them which indicates the intention of the parties to treat them independently. c. Each of the services contemplated constitute an aim in itself for a consumer and no way can one service be con....
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....charges' contains a very negligible element of insurance charges. The practical reality of the transaction therefore is such that the amount charged by the Applicant pertains majorly to the transportation service supplied by it. In the instant case, principal supply envisaged under this agreement is transportation services only. D. ISSUES RELATING TO ADVANCE RULING AND APPLICANT'S UNDERSTANDING. Questions D.1 Whether the supply of transportation services, rendered by the Applicant under the contract for services, will be exempt from the levy of GST in terms of Sl. no. 18 of the Notification No. 12/ 2017-CT (Rate) dated 28.06.2017. Applicants understanding D.2 As explained in the above para C, the Applicant is making an independent supply of transportation of goods service. Further, it is neither a GTA transportation agency nor a courier agency and thus is eligible to claim exemption from levy of GST under Notification No. 12/2017 dated 27.06.2017. 03. CONTENTION - AS PER THE CONCERNED OFFICER The submission, as reproduced verbatim, could be seen thus- Please refer to letter No. NSK-II Div/29/T-II/2-17-18 dated 25.09.2018 the above subject wherein Application for Advance....
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....ods' without a place of supply. As the goods to be supplied under the First Contract involves movement and/or installation at the site, the place of supply shall be the location of the goods at the time when movement of the goods terminates for delivery to the recipient or moved to the site for assembly or installation refer to Section 10(1)(a) & (d) of the IGST Act, 2017). The First Contract however does not include the provision and cost of such transportation and delivery. It, therefore, does not amount to a contract for 'supply of goods' unless tied up with the Second Contract. The First Contract has 'no leg' unless supported by the Second Contract. It is no contract at all unless tied up with the Second Contract. The Contractee is aware of such interdependence of the two contracts. Although awarded under two separate contract agreements, clauses under both them make it abundantly clear that notwithstanding the break up of the Contract Price, the contract shall, at all times, be construed as a single source responsibility and the Applicant shall remain responsible to ensure execution of both the contracts to achieve successful completion. Any breach in any part of the First Co....
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....ng under GST, West Bengal vide Order in case no.7/2018 dated 11.05.2018 in the case of EMC Ltd. [2018 (13) GSTL 217 ( A.A.R.-GST) = 2018 (5) TMI 964 - AUTHORITY FOR ADVANCE RULINGS, WEST BENGAL ruled that the applicant supplies works contract service, of which freight and transportation is merely a component and not a separate and independent identity and GST is to be paid at 18% on the entire value of the composite supply including Supply of materials, freight and transportation, erection, commissioning etc. (iii) The Authority for Advance Ruling under GST, West Bengal vide Order in case no.8/2018 dated 27.02.2018 in the case of IAC Electricals Ltd. [2018-TIOL-40-AAR-GST] = 2018 (5) TMI 1701 - AUTHORITY FOR ADVANCE RULING - WEST BENGAL ruled that services of transportation in-transit insurance and loading/unloading, being ancillary to the principal supply of goods, shall be treated to taxation under Section 8(a) of the GST Act, and the consideration receivable on that account be taxed accordingly. 04. HEARING The case was taken up for Preliminary hearing on dt. 04.09.2018 when Sh. Chaitanya Bhatt, Advocate along With Ms. Meghna Mohpatra, Advocate appeared and made oral and wr....
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....We also find from the facts and documents put up before us by the applicant as well as the jurisdictional officer that, the applicant is not transporting the goods but is hiring the services of a GTA to undertake the transportation of goods by road & is claiming to be discharging GST liability under Reverse Charge Mechanism and in such a situation he is a recipient of such service and is not a supplier thereof. Further, from the submissions made before us, we clearly find that the first contract referred to above includes ex-works supply of all equipments and materials which includes testing and supply of cable package required for successful commissioning. We find that the second contract consists of all other activities required to be performed for commissioning of the project which also includes transportation, insurance, etc. We fully agree with the contentions of the jurisdictional officer with regard to interdependence of two contracts which are reproduced as under:- "The First Contract includes ex works supply of all equipments & materials. The scope of the works includes testing and supply of Cable Package required for Successful commissioning. The second contract inclu....
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....pply of the goods & allied services are not separately enforceable The recipient has not contracted for ex-factory supply of materials, but for the composite supply, namely Works Contract for Supply, Laying and Terminating or 220KV U/G Cables. In respect of the proposition of law as made by the jurisdictional officer, we find support from the judgement of Hon. Supreme Court in case of M/s. Indure Ltd. & Anr. vs Commercial Tax Officer & Ors. on 20 September, 2010 C.A. NO. 1123 of 2003 = 2010 (9) TMI 883 - SUPREME COURT OF INDIA, wherein the Hon. SC held as under: By way of letter of award dated August 16, 1988, N.T.P.C. awarded two contracts to the company for performing the work of erection of aforesaid plant on turnkey basis. Even though two contracts were entered into between the parties but in nutshell it was only one contract for the simple reason that N.T.P.C. kept a right with it with regard to cross-fall breach clause meaning thereby that default in one contract would tantamount to default in another and whole contract was liable to be cancelled. Thus from the detailed facts of the case as put before us, as per the first and second contracts referred above there is no do....