TaxTMI 
TaxTMI 
2019 (7) TMI 815
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....d as being under the "GST Act". • The issue raised by M/s National Highway Authority of India (Regional Office), F-120, Janpath, Shyam Nagar, Sodala, Jaipur, Rajasthan, 302019 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97(2) (e)(g) given as under : (e) determination of the liability to pay tax on any goods or services or both. (g) whether any particular thing done by the applicant with respect to any goods and/or services or both amounts to or results in a supply of goods and/or services or both, within the meaning of that term. • Further, the applicant being a registered person (GSTIN is 08JPRR05704G1D4 as per the declaration given 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 applicant is admitted to pronounce advance ruling. 1. SUBMISSION AND INTERPRETATION OF THE APPLICANT: a. National Highways Authority of India is set up by an act of Parliament as an Authority for the development, maintenance and management of national highways and for ma....
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.... the Applicant and RVPNL that whosoever is undertaking the primary project for modification, all the cost relating to that modification shall be borne by it. In the current situation, NHAI is undertaking project for modification of Highways, as a result, all the in between cost including cost in relation to Deposit work of shifting of transmission towers shall also be borne by NHAI. g. Hence, NHAI applied an application to RVPNL with a nominal application fee for shifting/ raising of transmission lines owned by RVPNL. The RVPNL approved the application and provided its specification and cost estimates in Circular no. F&R 1235 dated 07.08.2018 based on which NHAI has to work on shifting of its transmission lines. (The copy of the circular dated 07.08.2018 provided by RVPNL has been attached in Annexure- 1). h. RVPNL shall be charging 5% of the total cost estimate as Supervision charges for supervising the Deposit work carried out by NHAI and a fixed amount of Shut Down charges and GST on both the components. NHAI is willing to pay these aforementioned amount plus GST on the same. i. The total cost estimate for Deposit work provided by RVPNL is solely for the purpose of work....
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....s not even a consideration for RVPNL is being objected by NHAI. p. The modification work which involves (i) Dismantling the portion of EHV line. (ii) Construction of new portion of EHV line to substitute this dismantled portion. (iii) Civil Work (Foundation, Erection of super structures towers/poles and stringing of conductor arises), is being executed through contractors, who is paying GST applicable to the vendors, supplying the materials required and labour contractors in their invoices/ bills; which are paid by NHAI directly or by reimbursement to the road constructing Contractor. q. Given the above background, the present application is being preferred before the Hon'ble Authority of Advance Ruling to determine whether there is any 'Asset transfer' by NHAI to RVPN in shifting of transmission lines of RVPN, which is a supply leviable to GST. 2. OUESTIONS ON WHICH THE ADVANCE RULING IS SOUGHT a. Whether there is any 'Asset Transfer' involved which is a supply leviable to GST in the work of shifting & raising of transmission lines owned by RVPNL by NHAI in the course of widening, modification & diversification of its highways ....
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....ed over to RVPNL; • RVPNL is stating that GST is applicable on not only supervision charges but also on cost estimate which includes supervision charges, a proper case of double taxation. c. We observe that the applicant is a Central Government entity whose primary work is building roads and bridges. Shifting, dismantling and raising of transmission lines is done by the applicant as and when required for safe electrical clearances during the widening of the National Highways, which is an ancillary to its main work. In the process of the activity, nowhere any assets are transferred to the applicant and therefore ownership lies with the RVPNL. It is merely an activity where just shifting of power transmission towers/ lines is done to widening of the National highways. d. To determine whether the said transaction is a supply, the relevant portion of Section 7 of GST Act, 2017 is reproduced below:- 1 (a) "supply" includes all forms of supply of goods or services or both such as sale, transfer, barter, exchange, license, rental, lease or disposal made or agreed to be made for a consideration by a person in the course or furtherance of business; We find tha....