TaxTMI 
TaxTMI 
2020 (3) TMI 895
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.... Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Applicant is stated to be engaged in the activity of providing technological and system solutions, including electrification, industrial automation, motion and robotics, data management and production control systems. Rail Vikas Nigam Ltd (hereinafter RVNL) has awarded it the contract for 'extension of SCADA for Noapara - Dakshineswar Metro Corridor' (SCADA stands for Supervisory Control and Data Acquisition). The Applicant seeks a ruling on whether Entry 3(v) of Notification No. 11/2017 - Central Tax (Rate) dated 28/06/2017 (State Notification No. 1135-FT dated 28/06/2017), as amended and hereinafter collectively called the Rate Notification, is applicable for its supply to RVNL by way of erection, commissioning, installation, completion etc. of SCADA System. Advance ruling is admissible on this question under section 97(2) (a) & (b) of the GST Act. 1.2 The Applicant declares that the issue raised in the application is not pending nor decided in any proceedings under any provisions of the GST Act. The officer concerned from the Revenue has raised no objection to the admissibility Of t....
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....using substantial damage. Such shifting will render such cables incapable of further use. In short, SCADA System installed is intended to be permanently attached to earth and cannot be removed without causing substantial damage to the goods attached to earth. Furthermore, the parts are so interlinked to constitute a functioning SCADA System that none can be moved separately. The composite supply, therefore, amounts to erection and commissioning of an immovable property and classifiable as works contract as defined under section 2(119) of the GST Act. In support of its argument the Applicant refers to the apex court's judgments in Solid and Correct Engineering Works [(2010) 252 ELT 481 (SC)] = 2010 (4) TMI 15 - SUPREME COURT, Virdi Brothers [(2007) 207 ELT 321 (SC)] = 2006 (12) TMI 3 - SUPREME COURT, TTG Industries Ltd [(2004) 167 ELT 501 (SC)] = 2004 (5) TMI 77 - SUPREME COURT and Triveni Engineering & Industries Ltd [(2000) 120 ELT 273 (SC)] = 2000 (8) TMI 86 - SUPREME COURT. The Applicant also refers to a decision of the Appellate Authority for Advance Ruling, Rajasthan, in the case of RFE Solar Pvt Ltd [(2019) 23 GSTL 378] = 2019 (3) TMI 920 - APPELLATE AUTHORITY FOR ADVANCE RUL....
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....em on the Metro Corridor between Baranagar to Dakshineswar section. The field work involves site survey, concept plan, design and drawing, extensive wiring and laying of cables, civil works as required, and testing and commissioning of the system. It is a composite supply of goods and services. However, such supply will be called works contract only if it amounts to erection and commissioning of an immovable property 4.4 "Immovable property" is not defined under the GST Act. The term 'goods' is defined under Section 2(52) of the GST Act as all kinds of moveable properties other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply. Property other than goods, money and securities should, therefore, be considered as 'immovable property' under the GST Act. However, in the absence of a definitive explanation under the GST Act, recourse is being taken to other allied Acts dealing with "property" to determine the definition of "Immovable property" It is seen that Section 3(26) of the General Clauses Act, 1897 defines "Immovable Prop....
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....tent to making it permanent cannot be an immovable property. The emphasis is on the intention of the party. The apex court observes that the specific machine in question can be moved and has indeed been moved after the road construction and repair project, for which it was installed, is completed. However, if a machine is intended to be fixed permanently to a structure embedded in the earth, the moveable character of the machine, according to the Supreme Court, becomes extinct. 4.7 In the present context, erection and commissioning of SCADA System involves attaching cables and other electrical equipment to the earth with no intention of removing or shifting them in foreseeable future. Moreover, the parts are so interlinked to constitute a functioning SCADA System that none can be moved separately or without causing substantial damage to the goods attached to earth. The moveable character of the goods like cables and other equipment, therefore, becomes extinct. The Applicant's supply thus amounts to erection and commissioning of an immovable property involving transfer of property in goods in its execution and, therefore, works contract within the meaning of section 2 (119) of the....