TaxTMI 
TaxTMI 
2021 (8) TMI 733
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....e not registered tax payer under Tamil Nadu goods and Service Tax Act 2017. The applicant has sought Advance Ruling on: Whether Goods and Service Tax is applicable on Components supplied by the Vendors in a Sale-in-Transit to AHPL? The Applicant has submitted the copy of application in Form GST ARA - 01 and also submitted a copy of Challan evidencing payment of application fees of Rs. 5,000/- each under sub-rule (1) of Rule 104 of CGST rules 2017 and SGST Rules 2017. 2.1 The applicant has stated that they have entered into a contract dated 21 July 2015 ("Contract") with Tamil Nadu Generation and Distribution Corporation Limited ("TANGEDCO") for renovation, modernisation and uprating the Sholayar Power House - I from 2x35MW to 2x42MW ("Project") located at Sholayar, District Coimbatore, Tamil Nadu. The applicants have produced a copy of letter dated 30 January 2018 issued by TANGEDCO providing the details of aforementioned transaction. In terms of the Contract, AHPL was required to supply new components, tool, tackles, spares and such other material ("Components) for undertaking modification, engineering, erecting, testing, commissioning and associated technological, ....
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....s, the applicant was addressed through the Email Address mentioned in the application to seek their willingness to participate in a virtual Personal Hearing in Digital media. The applicant consented and the hearing was held on 19.02.2021. The Authorized representatives Shri Milind J Saraf, Authorised Signatory, Shri Ayush A Mehrotra, Partner, Khaitan and Co LLP, Shri Upkar Agarwal, Associate, Khaitan and Co LLP appeared for the hearing virtually. He was asked to clarify whether the question relates to receipt of the goods by them or the supply made by them to TANGEDCO. The authorized representative stated that the question relates to the receipt of the goods by them and he reiterated his earlier submissions. The authorized representative was stated by the Members that the question raised is on the supply by the vendor to them and therefore not admissible under the Provisions of Section 95 read with Section 97(2) of GST Act. The authorized representative stated that the question is on the applicability of GST on the Sale-in-transit of the goods and requested for reframing the question. They were permitted the same and were asked to furnish the submissions in a week's time. 3.....
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....an opportunity of hearing via video conferencing/ digital hearing facility, to explain their additional submission. 3.3 The applicant was extended a hearing in digital mode on 09.04.2021. The Authorised representatives appeared for the hearing. They stated that as permitted in the earlier hearing, they had amended the questions. It was intimated that Q.No.1 being general in nature cannot be admitted while Q.No. 2 is specific and is admitted. The authorized representative reiterated the submissions. He stated that there is no exemption under CGST or IGST as was available under CST as per Section 6(2) of CST Act. He stated that the agreement entered into with TANGEDCO is a composite contract of Works Contract Services but this application is made to ascertain the applicability of GST on the components, spares i.e., on supply of goods. When the entire contract is a Works Contract Services, a service under GST, the applicant was asked to furnish a write up on how the applicant is a supplier of goods for which ruling is sought along with any purchase order issued by TANGEDCO. The applicant was intimated that Advance Ruling can be extended only for transactions undertaken and question....
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...., CGST and Central Excise, Kochi, 2020 (35) GSTL 40 (Ker.), • Ruling of the Hon'ble Authority In Re: Bank of Nova Scotia, 2019 (21) G.S.T.L. 238 (A.A.R. - GST). 3.5 Another hearing was extended to the applicant. Authorized representatives appeared for the hearing virtually on 23.07.2021 and reiterated the submissions. They submitted that RMU Phase I has been completed and a certificate has been issued by TANGEDCO on 03.09.2019. The applicant has been supplying components for operation and maintenance without undertaking any supply of services as submitted by them in paras 3.01.05, 3.01.05.02 & 3.01.06 and that they are under an obligation for supply of spares/ tools for a period of five years and also to suggest recommended spares for the operation and maintenance of plant. They emphasized on the case laws relied upon in their submissions. Regarding the question of jurisdiction of Advance Ruling Authority on inter-state supplies they stressed upon their submissions in para 15 of letter dated 16.06.2021 and the case laws relied on in this regard. The authorized representative submitted that they have been taxed at 18% constantly. The Member questioned about the r....
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....t chain. In respect of Q.1 above, it is seen that the question relates to ascertaining liability which involves two supplies, from Vendor of the applicant to the applicant and the applicant to TANGEDCO. As per Section 95 read with Section 103 of the GST Act, ruling can be sought by the supplier of the goods/service only in respect of supplies made/proposed to be made. This was explained to the applicant during the hearing. As the issue raised in the Q.No.1 relates pertains to more than one supply, the question is not admitted for consideration in merits. 6.3 The second question requires ruling on the liability to GST of the applicant, when the Components are supplied to TANGEDCO. In this situation, the applicant is the supplier and the question is on the supply being made by them. As the Question No. 2 relates to determination of taxability, the same is covered under the purview of Section 97(2) of the GST Act and the said question is admitted for consideration on merits. 7.1 The Applicant has stated to have entered into a contract dated 21 July 2015 ("Contract") with Tamil Nadu Generation and Distribution Corporation Limited ("TANGEDCO") for renovation, modernisation and upr....
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....undertake to supply operating and maintenance spares at reasonable price at any time later during the life of the plant, i.e. twenty five years on request of the purchaser.... 7.02 GST In SHOLAYAR RMU: (e ) The entire work shall be treated as a composite supply of services and the GST shall be quoted as per the GST norms 12.05.01 The contractor shall guarantee that the equipment shall be new and in accordance with the contract document and be free from defects in design material and workmanship. The guarantee period shall be 24(Twenty four) months from the date of Initial Take over of units by TANGEDCO. The contractor's liabilities shall be limited to the replacement of any defective parts in the equipment of his own manufacture or those of his subcontractors under the normal use and arising from faulty design, materials and/or workmanship. 29.03.01 On successful completion of trial operation, the unit will be initially "Taken Over" with a list of major/minor defects and non-conformities prepared jointly by the Purchaser and Contractor.... 29.04.06 Commissioning of any equipment of the unit shall be deemed to be successfully completed, when t....
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....90-970350/SR/CPM/2020/749 dated ll-Sept-2020 addressed to the Chief Engineer-Hydro, TANGEDCO enclosing the BOE No. 53 dated 11.09.2020, Invoice No. 8901004096 dated 26-08-2020, 8901004097 dated 26-08-2020, 8901004098 dated 26-08-2020, 8901004124 dated 07-09-2020 and 8901004125 dated 07-09-2020 raised by them on TANGEDCO for the supplies made by them; • Lr. No. CE/H/SE/HRM/A4/F.WCT. 13 dt 30.01.18/MDCC/D. 117/2020 dated 22.06.2020, issued by CE/Hydro TANGEDCO to the applicant, waiving the inspection and allowing dispatch of the products -Table-5 in WCT Mandatory Spares (O & M Spares) and Table -2 in WCT Tools and Tackles; • Lr. No. CE/H/SE/HRM/A4/F.WCT. 13 dt 30.01.18/MDCC/D. 161/2020 dated 25.08.2020, issued by CE/Hydro TANGEDCO to the applicant, waiving the inspection and allowing dispatch of the products -BBU-Table-5 in WCT Mandatory Spares; • Spare Material Handing over note. On perusal of the above documents, it is seen that TANGEDCO has issued 'Initial Take Over' Certificate after completion of 30 days trial operation including 72 hours of continuous full load operation as per para 29.03. The applicant has been asked to make go....
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....from levy of sales tax. It clear that to claim exemption u/s. 6(2) of the CST Act, in respect of a second or subsequent sale, the dealer has to furnish: (i) the original form E-l, received from the dealer from whom goods were purchased; and (ii) form 'C' or 'D' obtained from the person to whom the goods were sold in the course of the inter-State sale. These requirements are mandatory and in the absence of furnishing any one of these forms, the dealer would not be entitled to exemption. The term "document of title to goods" is defined under section 2(4) of the Sale of Goods Act, 1930, as follows: • • "document of title to goods' includes a bill of lading, dock-warrant, warehouse-keeper's certificate, wharfinger's certificate, railway receipt, warrant or order for the delivery of goods and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorizing or purporting to authorize, either by endorsement or by delivery, the possessor of the document to transfer or receive goods thereby represented;" • Prior inter-State sale is the first requireme....
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....truction, fabrication, 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;" Composite Supply is defined under Section 2(30) of the GST Act as follows: (30) "composite supply" means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply; Illustration.-; 8.3 From the various submissions of the applicant, it is seen that the applicant based on the contract for the work of RMU at Sholayar Power House, has procured the Components/Spares to be supplied by them to TANGEDCO and have supplied them to TANGEDCO, raised commercial Invoices for such supply with the applicable GST. The applicant has purchased the components which is a 'Supply' wherein the applicant is the recipient and thereupon has transfe....