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2020 (2) TMI 550
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....aws of Spain and VAAAN Infra Private Limited ("VAAAN"), a company incorporated under the laws of India. 3. The applicant has executed a contract with "NHAI for development of six lane Eastern Peripheral Expressway : ITS (Intelligent Transport System) Installation Project", which includes Advanced Traffic Management System (ATMS), Toll Management System (TMS) and Digital Transmission System. 4. The applicant has submitted application for Advance Ruling dated 22-5-2019 enclosing duly filled Form ARA-01 (the application form for Advance Ruling) along with annexures and attachments (physically received by the Authority on 10-6-2019). 5. The applicant, in his application, has sought clarification and Advance Ruling as ....
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.... 7. We have gone through the submissions made by the applicant and have examined the detailed explanation submitted by them. We observe that the questions sought by the applicant are - (I) Whether the "composite supply" of "works contract" provided by the applicant to NHAI shall be classified under Entry (vi) to Serial No. 3 of the CGST Rate Notification read with the UPGST Rate Notification liable to effective rate of GST @ 12% including CGST and UPGST? (II) Whether the "composite supply" of "works contract" provided by the applicant to NHAI shall also be classified under Entry (iv) to Serial No. 3 of the CGST Rate Notification read with the UPGST Rate Notification liable to effective rate of GST @ 12....
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....pletion, 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; Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be." and in both the cases the applicable rate of GST is @ 12% including CGST and SGST. 10. Now, we observe that the question before us to decide, is : (i) Whether the supply made by the applicant to the NHAI is a "composite s....
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....39;works contract' means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property, wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract." 12. We observe that the agreement entered into between the applicant and NHAI is for the "Development of six lane Eastern Peripheral Expressway : ITS (Intelligent Transport System) Installation Project", which involves design, supply, installation, testing, commissioning of ITS which primarily includes Advanced Traffic Management System (ATMS), Toll Management System....
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.... or building. (2) Attachment in order to qualify the expression attached to the earth, must be for the beneficial attachment of that to which it is attached. Doors, windows and shutters of a house are attached to the house, which is embedded in the earth. They are attached to the house which is embedded in the earth for the beneficial enjoyment of the house. They have no separate existence from the house. Articles attached that do not form part of the house such as window blinds,and sashes, an ornamental articles such as glasses and tapestry fixed by tenant are not affixtures. (3) The fixing of the plates (Machinery) to a foundation is meant only to give stability to plant and keep it's operation vibration free." Fr....
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....ant is more appropriately classified under Entry (iv) to Serial No. 3 of the CGST Rate Notification rather than Entry (vi) of the said Notification. 17. As regard to the question of GST rate with respect to the services rendered by the sub-contractor, we observe that as per the Section 95(a) of CGST Act, 2017, the definition of the advance ruling is as under : (a) "advance ruling" means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of Section 97 or sub-section (1) of Section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; 18. From the above, it is see....