TaxTMI 
TaxTMI 
2019 (4) TMI 1446
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.... 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 energy 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 that the contract combines ESCO model and O&M work. ....
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....period. Storage Tanks (CWR) (......Text missing......) concepts evolved from the precedents, it is understood that the 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. QUESTIONS 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 14.03.2019 at Room No. 2.22, NCRB, Statue Circle, Jaipur. Ms Shuchi Sethi, (Authorised Representative) appeared on behalf of the applicant. During the PH, she reiterated the submissions already made in the application and requested for early disposal of the applicatio....
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.... Further, since composite supply of works contract has been specifically classified as supply of service under Schedule Il, it should be first analysed whether the contract can be classified as a works contract or not. e. The scope of work under the contract has been carefully examined to derive that it involves Pump House/ Replacement/ refurbishment/ repair/ rehabilitation of existing pump sets, switchgears, mechanical and electrical 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. f. The operation and maintenance work shall be carried out of all the electrical and mechanical instruments, pumping machinery etc. g. 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. h. He shall be responsible for painting, color/ ....
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....ntract. k. That Works contract in itself is a composite supply in which construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning etc are involved along with transfer or property in goods. 1. Now whether a supply is a works contract or not is dependent on whether the plant or device or property 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. m. 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: n. 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. ....
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....upply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 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 cle....