TaxTMI 
TaxTMI 
2020 (12) TMI 190
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....ion 99 of the West Bengal Goods and Services Act, 2017, within thirty days from the date of communication of this ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such appeal shall be filed in accordance with Section 100 (3) of the GST Act and the rules prescribed thereunder, and the regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the application 1.1The applicant is a supplier of building structure, railway bridge equipment, technical structure, blast furnace shell, civil structure. Apart from supplying items, the applicant does job work on the materials and design belonging to another registered person. The applicant wan....
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....pplicant supplies the paint, the activity should be regarded as works contract. On the other hand, if the Principal provides the paint, the agreement should be treated as that of job work. The concerned officer also likes to focus on the issue that performance of fabrication, paintings and transportation should come under the ambit of mixed supply and should attract the highest rate of tax. 4. Observations and findings of the Authority 4.1 Job work has been defined under section 2(68) of the GST Act as any treatment or process undertaken by a person on goods belonging to another registered person. Rule 2(h) of the Cenvat Credit Rules, 2004 defines job work as processing or working upon raw materials or semi-finished goods supplied to the ....
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....material. As regards the fabrication job, the applicant's liability ends after delivery of the fabricated structures at the site. But it needs to apply a coat of paint after the structures are erected. 4.4 The applicant's activities can, therefore, be segregated into (1) job-work of fabrication on the material provided by the Principal and delivery thereof, (2) supply of paint on the fabricated structures and (3) works contract involving the application of a coat of paint on the erected structures and thereby improving / maintaining an immovable property. It appears from the payment schedule (Clause 29) that the applicant receives 80% of the payment on delivery of the fabricated structures at the site. At the same time, the balance amount ....
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....onstitute a composite supply the predominant nature of which is the job work. It is the principal supply, and the application of a coat of paint on the fabricated structures and their transportation for delivery at the site are ancillary to it. But whether the inseparable linkage of the contract with the stage when the fabricated structures lose their movable nature turns the entire activity into a works contract is a more complex issue. 4.7 Two questions are involved - liability of the applicant and the payment schedule. The significant portion of the applicant's liability ends with the delivery of the fabricated structures. It is required to apply a coat of paint after the structures are erected. But the contract does not make it respons....