TaxTMI 
TaxTMI 
2020 (6) TMI 490
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....KSC Buildcon Private Limited, 114- Piith Simalwara, Khirkaiyan, Dungarpur- 314001 (hereinafter the applicant) is fit to pronounce advance ruling as it falls under the ambit of the Section 97 (2) (a) & (f) given as under: (a) Classification of any goods or services or both; (f) Whether applicant is required to be registered; * Further, the applicant being an un-registered person 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. A. SUBMISSION AND INTERPRETATION OF THE APPLICANT: 1. As per the said work order, applicant have signed a contract agreement for development work of mines including the earthwork of drilling, excavation, removal, transportation of green marble/ serpentine and dumping of waste material. Also, we need to build the roads for the movement of vehicles and are also responsible for safe maintenance of the haul roads and have to deploy necessary personnel from our own or through some external agency for the same. If required, we may also purchase the land o....
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....of machines; 7. that we have not found any other Chapter head other than SAC 9954 i.e. Composite supply of Work Contract Services to classify the above said work allotted to us; 8. that we seek clarification regarding applicability of SAC for a work allotted to us whose heading reads as "ALLOTMENT OF WORK FOR HIRING MINNG MACHINERY ALONG WITH MANPOWER TO PRODUCE APPROXIMATELY 2,00,000 MT PER MONTH ON OUTPUT PER TON BASIS"; 9. that if we go through the complete scope of work, the said relates to COMPOSITE SUPPLY OF WORK CONTRACT AS DEFINED IN CLAUSE 119 OF SEC.2 OF CGST ACT, 2017 INVOLVING PRE DOMINANTLY EARTH WORK rather than merely a hiring or leasing contract involving development of mines, drilling, excavating of stone & supply of skilled and unskilled manpower. The above as per our interpretation of law falls under SAC 9954 & we have found 2 notifications of Central Tax (rate) in this regard which are as under: Notification No. Heading & Serial No. Description Rate % 11/2017-Central Tax Heading 9954 Sl. No. 3. 3 (ii) Composite Supply of Work Contract as defined in clause 119 of Section 2 CGST Act, 2017. 9% 31/2017- Central Tax Heading 9954 SERIAL 3 3 (vii) Compos....
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....and manpower as per GST Provisions? 3. Whether the Special Purpose Vehicles in the above work order are classified as "Machinery"? C. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 19.3.2020 at Room no. 2.29 NCRB, Statue Circle, Jaipur. on behalf of the applicant Shri Ankit Sapra, (Authorized Representative) appeared for PH. During the PH, he reiterated the submissions already made in the application and submitted additional submission along with a copy of Advance Ruling Order No. JHR/AAR/2018-19/01 dated 02.08.2018 = 2019 (1) TMI 1369 - AUTHORITY FOR ADVANCE RULING, JHARKHAND. D. COMMENTS OF THE JURISDICTIONAL OFFICER Comments from the CTO, Circle- Durgarpur vide letter dated 18-2-2020 received in this office are reproduced as under: E. FINDINGS ANALYSIS & CONCLUSION: 1. While going through the submissions made by the applicant in ARA-01 and an agreement letter dated 23.12.2019 (hereinafter 'the agreement') between the applicant and M/S AMP Minerals Pvt. Ltd. (hereinafter 'M/s. AMP' for sake of brevity), we find that the applicant has been tasked to extract 2 lakh MT of Serpentine/Green Marble (hereinafter 'the mineral) per year at M/s. AMP'....
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....bt a 'goods' which is extracted from the land but since the applicant do not have any ownership of the said mineral and land before the agreement, in duration of agreement and post agreement, therefore the activity is just a service to M/s. AMP. 4. In view of above, we find that the applicant is providing supporting service related to mining. The said service is classifiable under HSN 998622. The rate of GST on the said service is 18% (CGST 9% + SGST 9%) as provided under the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended). The relevant portion of the said Notification is as under- Sl.No. Chapter, Section or Heading Description of Service Rate (per cent) Condition 24 Heading 9986 [(iii) Support services to mining, electricity, gas and water distribution other than (ii) 9 - 5. Further, the Explanatory Notes on Classification of Services which are based on United Nations Central Product Classification (UNCPC) and equally mandated by CBIC in determination of Classification of Services, describes HSN 998622 as following- 998622 Support services to other mining n.e.c. This service code includes draining and pumping of mines; overburden removal ....
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.... 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;". Thus, the foremost conditions of WCS arc that it leads to creation of an immovable property and then transfer of the said property in goods, whereas in the instant case, no immovable property is created and question of transfer is docs not arises as ownership of the property and minerals is with M/s AMP. 9. Further, the contention raised by the applicant that his issue is similar to matter discussed in advance ruling order passed by Jharkhand Authority for Advance Ruling (JAAR) vide Order No. JHR/AAR/2018-19/01 dated 02.08.2018 = 2019 (1) TMI 1369 - AUTHORITY FOR ADVANCE RULING, JHARKHAND is also not tenable on the ground that the order passed by JAAR is related to a partnership firm which is engaged in providing works contract services to a government entity whereas in the instant case, both facts are non-existing. 10. Section 97 (2) of CGST Act, 2017 delineates clauses under which an applic....