TaxTMI 
TaxTMI 
2021 (1) TMI 425
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....k as per layout plan (appox.30500 sqm.). c. High mast lighting in the pavement along the track. d. Admin Building (G+1, approx..475 sqm. per floor) including all civil, electrical, water supply, sanitary and fire-fighting work. e. Electrical sub-station (ESS). f. Main entry gate and security cabin. g. Electrical installations in Admin building, ESS, Entry gate, Security gate etc. Phase-II works: a. Warehouse-3 nos. of 140x30m each (3x4200 sqm=12600sqm.) b. Balance Pavement area like area around warehouse and connecting road between pavement near track and pavement around warehouse. c. EIMWB and EIMWB room. d. Electrical & fire-fighting works. e. Other misc. works as per requirement. 4. In backdrops of above, the applicant sought advance ruling on following question: Whether the said work can be covered under clause 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017 i.e. Works Contract by way of construction, erection, commissioning or installation of original works pertaining to railways so as the entitle it for charging rate of GST@ 12% instead of....
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...., as defined under Section 2(119) of the CGST Act, 2017. B. Whether the said work can be considered as 'original work' as mentioned in clause 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017? B.1 As per clause (zs) of the Notification No.12/2017-Central Tax (Rates) dated 28.06.2017, the term 'Original work' has been defined as under: (zs) "original works" means- all new constructions; (i) all types of additions and alterations to abandoned or damaged structures on land that are required to make them workable; (ii) erection, commissioning or installation of plant, machinery or equipment or structures, whether pre-fabricated or otherwise; B.2 Perusal of the detailed scope of work as per clause 1.4 of the tender document and brief scope of work as mentioned in para 3 above indicates that the work awarded to the applicant comprises of laying of track work as per layout plan, pavement along the track, construction of admin building, warehouse and electrical/fire-fighting works. Therefore, the applicant is of the understanding that all the said work as mentioned in the scope of work are in the nature of new ....
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.... lake or other navigable inland waters for the purposes of the traffic of a railway and owned, hired or worked by a railway administration, but does not include- (i) a tramway wholly within a municipal area; and (ii) lines of rails built in any exhibition ground, fair, park or any other place solely for the purpose of recreation;" C.4 Further, Section 2(20) and (25) of the Railways Act, 1989 define "Government railway" and "Non-Governmental railway", as reproduced below: (20) "Government railway" means a railway owned by the Central Government; (25) "non-Government railway" means a railway other than a Government railway; Perusal of scopeof work covered under the impugned Contract clearly shows that nature of works as mentioned in Phase-I & II of the Works Contract are covered under various clauses of definition of Railway under Section 2(31) of the Railway Act, 1989. C.5 Reliance is placed on ruling by the Authority of Advance Rulings-2016 (9) TMI 50 Other Citation: 2016 (45) S.T.R. 583 (A.A.R.) in the case of M/s Steadfast Corporation Ltd. Vs. Principal Commissioner of Service Tax, Hyderabad, Telangana State = 2016 (9....
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....7. C.6 Further, the definition of railway under section 2(31) has also been adopted by the CESTAT, Chandigarh in the case of M/s Nabha Power Limited Vs. Commissioner of Central Excise & ST, Chandigarh in Appeal No.ST/52893/2015-DB in Final Order No.62617/2018 = 2018 (8) TMI 1228 - CESTAT CHANDIGARH. C.7 In view of the above, as per their outstanding, the impugned works contract seems to be falling within the definition of railways and, hence, as per their opinion, GST rate applicable to said works should be 12% in terms of clause 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017. 8. They have also furnished an additional submission, vide their letter dated 10.06.2020, wherein they brought the following case laws on records for consideration during next hearing scheduled on 11th June, 2020: A. Ruling by the Authority for Advance Rulings, West Bengal-27/WBAAR/2018-19-Case No. 28 of 2018 dated 21.12.2018 in RE: RITES Limited = 2018 (12) TMI 1226 - AUTHORITY FOR ADVANCE RULING, WEST BENGAL, wherein it has been ruled that construction of a private railway siding for carriage of a coal and oil fuel to Raghunathpur TPS, as described ....
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....ant's interpretation of law. At the outset, we would like to state that the provisions of both the CGST Act and the GGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the GGST Act. 11. The applicant has sought advance ruling in respect of following question: Whether the said work can be covered under clause 3(v)(a) of the Notification No.11/2017-Central Tax (Rates) dated 28.06.2017 i.e. Works Contract by way of construction, erection, commissioning or installation of original works pertaining to railways so as the entitle it for charging rate of GST@ 12% instead of 18%? 12. We find that the applicant has been awarded the Contract by M/s Rites Limited, which is a Public Sector Undertaking. Said contract was awarded for execution of works of laying of track as per layout plan, pavement along the track, construction of Admin building, Warehouse, Electrical works and Fire-fighting works etc. at Khodiyar, Gandhinagar, Gujarat. Further, contract is involving both supply of goods and services and is a composit....
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....e applicant has submitted no evidence in support of the claim that work awarded to them pertains to Railways. 14.3.1 We find that "Railways" has not been defined under CGST Act, 2017, therefore, we refer to various provisions of the Railway Act, 1989. Section 2(31) of the Railway Act, 1989 defines "railways", as reproduced below: "(31) "railway" means a railway, or any portion of a railway, for the public carriage of passengers or goods, and includes- (a) all lands within the fences or other boundary marks indicating the limits of the land appurtenant to a railway; (b) all lines of rails, sidings, or yards, or branches used for the purposes of, or in connection with, a railway; (c) all electric traction equipment's, power supply and distribution installations used for the purposes of, or in connection with, a railway; (d) all rolling stock, stations, offices, warehouses, wharves, workshops, manufactories, fixed plant and machinery, roads and streets, running rooms, rest houses, institutes, hospitals, water works and water supply installations staff dwellings and any other works constructed for the purpose of, or in connection with, ra....