TaxTMI 
TaxTMI 
2020 (9) TMI 1143
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....3-100 dated 24.09.2019 = 2019 (9) TMI 987 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA. BRIEF FACTS OF THE CASE 1. Appellants herein, M/s. Soma Mohite Joint Venture (Joint Venture between Soma Enterprises and DM Corporation Pvt. Ltd.) are registered under Goods and Services Tax Act, 2017 having GST registration No. 27AAEAD1739FIZI and are having their Office at 3, Siddhivinayak Society, Soma Heights, Karve Road, Kothrud, Pune - 41 1 033. 2. Appellants are engaged in business of Construction of Infrastructure projects. On 27^th December 2008, a Joint Venture was formed between Soma Enterprises and DM Corporation Pvt. Ltd. (formerly known as Mohite & Mohite Engineers & Contractors Pvt. Ltd.) to undertake construction of tunnel and its allied works for Nira-Bhima Link No. 5 of Indapur Taluka, Pune under Krishna Bhima Stabilisation Project awarded by Godavari Marathwada Irrigation Development Corporation, Aurangabad. 3. On On 26th April 2019, Appellants filed an online Application for Advance Ruling before the Authority for Advance Ruling of Maharashtra (hereinafter referred to as "AAR") seeking Advance Ruling in respect of following Question: I. Whether the said co....
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.... in as much as contract awarded to the Appellants is in the nature of a Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. 10. AAR ought to have appreciated that Godavari Marathwada Irrigation Development Corporation falls within the meaning of the term Governmental Authority or a Government Entity in the light of Definition 2{zb) of the Notification No. 12/2017-CT (Rate) read with Explanation to Section 2(16) of the IGST Act. Appellant crave leave to refer to and rely upon further evidence in support of this submission when produced. 11. AAR ought to have appreciated that Sr. No. 3 of Eleventh Schedule of Article 243G of the Constitution which covers "Minor Irrigation, water management and watershed development" and Sr. No. 5 o....
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.... such other reliefs as the nature and circumstances may require be granted: IV. Appeal be allowed. APPELLANT'S SUBMISSION dated 09.12.2019 20. Application was filed by the present Appellants, before the Advance Ruling Authority (Hereinafter referred to as the AAR"), seeking an Advance Ruling in respect of following Questions: I. Whether the said contract Is covered under SI No.-3A, Chapter No 99 as per Notification No. 2/2018-Central Tax (rate) dated 25th January 2018, w.e.f. 25^th January 2018? II. Whether the said contract is covered under the term "Earth Work" and therefore covered under Sl.No. - Chapter No. 9954 as per Notification No. 31/2017Central Tax (Rate) dated 13th October 2017? III. If Appellants are covered under SI No. 3 Chapter No. 995 as per Notification No. 31/2017-Central Tax (Rate) dated 13th October 2017 w.e.f. 13' October 2017, then what is the meaning of "Earth Work"? BENEFIT OF EXEMPTION UNDER NOTIFICATION NO. 12/2017-CT (Rate) 21. The AAR has noted Question No. 1, and as also answered the same in the negative without assigning any reason whatsoever and therefore the Order to that extent is bad in law. ....
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....f the value of the works contract) provided to the Central Government, State Government, Union territory, local authority, a Governmental Authority or a Government Entity." 2.5 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 26. In the impugned Order it is an admitted position that: a. Contract / Transaction under consideration is Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017; b. Services are provided to the Central Government State Government, Union territory, local authority, a Governmental Authority or a Government Entity; c. Excavation Work constitutes approximately 92.66% of the value of Works Contract 27. The only Issue that requires to be decided is whether Excavation will qualify as "Earthwork"? The expression, "Earthwork", having not been defined in the CGST Act, Rules and Notifications, the AAR, in the impugned Order, made a reference to dictionary mea....
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....rder, i.e., about 96% is 'Earth Work', we find that the said work order qualifies for the benefit of Serial No. 3 of Notification No. 39/2017, dated 13-10-2017 issued under the GST Act, being composite supply of works contract as defined in clause (119) of Section 2 of the CGST Act, 2017,involving predominantly earth work i.e. constituting more than 75% of the value of work in contract provided to Central Government, State Government, Union territory, local authority, a Government authority or a Government Entity. GST will be applicable at the rate of 5%." (Emphasis Supplied) 30. It is lastly submitted that it is a settled law that if an assessee is entitled to benefit under two different Notifications or under two different Heads, he can claim more benefit and it is the duty of the authorities to grant such benefits if the applicant is otherwise entitled to such benefit. (Share Medical Care V. U01 (2007 (209) ELT 321 (SC))). 31. It is therefore submitted that the instant Appeal be allowed by extending the benefits as claimed by the Appellants. Personal Hearing 32. A personal Hearing in the matter was conducted on 09.12.2019, wherein Shri, Makarand P. S. Josh....
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....State Government, Union territory or local authority, as the case may be]- 36. It is seen that the appellant has also argued that their services are covered under Sr no 3A of Notification 12/2017 Central tax (rate) dt 28,6.2017 which is reproduced below:- (1) (2) (3) (4) (5) 3A Chapter 99 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. NIL NIL 37. The AAR has not dealt with the above submission of the appellant regarding coverage under Sr. no 3A of the Notification 12/2017 dt 28.6.2017 and have only discussed the submission of the appellant concerning Sr no 3 (vii)of Notification 11/2017 dated 28.06.2017 as amended by Notification no. 31/2017 Central Tax (Rate) dated 13.10.2017. Here we mu....
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....hydro electric energy to harness the water of the Godawari river pertaining to the State of Maharashtra and other allied and incidental activities including flood control in the Godawari river valley". Irrigation comes under Sr no 3 of Eleventh Schedule of Article 243G of the Constitution which covers 'Minor Irrigation, water management and watershed development 'and Sr no 5 of Twelfth Schedule of Article 243W of the Constitution which covers 'Water supply for domestic, industrial and commercial purpose. It has therefore to be seen whether it is a function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution, only in which case it can be said that the condition laid down in the later part of the entry is fulfilled. The Eleventh schedule of Article 243W covers minor irrigation /water management/watershed development and the work allotted. Now we will see whether the first part of the entry is fulfilled i.e "Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of the said composite supply. ....
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.... not been defined in the GST Act, Rules and the notifications. In the absence of the definition we may refer to Dictionary meanings as below: Definition of earthwork As per - Merriam Dictionary 1: an embankment or other construction made of earth especially : one used as a field fortification 2: the operations connected with excavations and embankments of earth 3: a work of art consisting of a portion of and modified by an artist Wikipedia, the free encyclopedia As per Civil engineering use [edit] Typical earthworks include road construction, railway beds, causeways, dams, levees, canals, and berms. Other common earthworks are land grading to reconfigure the topography of a site, or to stabilize slopes. Military use [edit] In military engineering, earthworks are, more specifically, types of fortifications constructed from soil. Although soil is not very strong, it is cheap enough that huge quantities can be used, generating formidable structures. Examples of older earthwork fortifications include moats, sod walls, motte-and-bailey castles, and hill forts. Modern examples include trenches and b....