TaxTMI 
TaxTMI 
2022 (11) TMI 80
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....y made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean a reference to the same provisions under the UPGST Act, 2017 and vice versa. Brief Facts of the Case 1. The Appellant has entered into a joint venture with M/s Indwell Constructions Private Limited and constituted M/s Indwell- HYT JV. The Joint Venture (JV in short) was allocated work related to "Construction of PEB Shed, structure, water supply, drainage, sewerage, road work, track work, power supply, general electric work, OHE works, signal & Telecommunication work, commissioning of machinery and plant in connection with setting up of electric loco shed at Saiyedpur Bhitri U.P.by Rail Vikas Nigam Limited (RVNL). 2. As per Appellant, the JV had awarded the contract to the JV partners on a back to back basis vide the JV agreement dated 10.10.2018 with the specific execution of the works contract between the partners. Appellant was allocated with the work of supply, installation and commissioning of the plant and machinery, mechanical engineering works, electrical works etc. as per the J.V. Agreement between the J.V. Partners. 3. Accordingly, the party has sought the advance ruling on....
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....rt from these machines, there is long list of machineries, assemblies and structures which together constitute the one homogeneous plant called Electric Loco Shed. 5.5) Electric Loco Shed for maintenance, repair and overhauling of electric locomotives requires Overhead Electric Supply to draw power through a pantograph for seamless movement of locomotives into and out of the shed. The Appellants have been sub contracted by the JV of the work of constructing Overhead Electric Supply. Upon installation of this overhead electric supply assembly it becomes one with the general electrical supply mechanism of the plant and cannot be moved without causing substantial damage not only to itself but the Entire Loco Shed itself. It has been held by the AAR of West Bengal in the matter of ABB INDIA LTD that Construction, erection, commissioning, or installation of original work - Attaching cables and other electrical equipment to earth with no intention of removing or shifting them in foreseeable future - Parts so interlinked to constitute functioning Supervisory Control and Data Acquisition (SCADA) system that none can be moved separately or without causing substantial damage to goods atta....
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..../services by the applicant to JV is not work contract. Here we observe that the main thrust of the Authority for Advance Ruling was that since the service provide by the appellant are not in respect of immovable property, accordingly not qualified for works contract. 8) . As per Section 2(119) of the CGST Act 2017 "Works Contract" has been defined as :- "(119) "works contract" means a contract for building, construction, 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; Whereas, in terms of Section 2(30) of the CGST Act, 2017 the "Composite supply" has been defined as: "(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;" Accordingly, For a ....
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....tute the one homogeneous plant called Electric Loco Shed. c. Electric Loco Shed for maintenance, repair and overhauling of electric locomotives requires Overhead Electric Supply to draw power through a Pantograph for seamless movement of locomotives into and out of the shed. 11). The Appellants have been sub contracted by the JV for the work of constructing Overhead Electric Supply. Upon installation of these overhead electric supply assembly it becomes one with the general electrical supply mechanism of the plant and cannot be moved without causing substantial damage not only to itself but the Entire Loco Shed itself. The appellant has also submitted that machinery installed at the Electric Loco Shed was not to be moved and transported as it is to any other place in foreseeable future and the Indian Railways also have no intention of moving the machinery in foreseeable future or selling it as it is in the open market. Thus, these are permanent fixtures to the embedded structure like wall, floor etc. This is as per Section 3(c) defining immovable property in the Transfer of Property Act, 1882. 12) . Now coming to the question whether the property involved in the ques....
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....into existence not excisable goods but immovable property which could not be shifted without first dismantling it and then re-erecting it at another site. We have earlier noticed the processes involved and the manner in which the equipments were assembled and erected. We have also noticed the volume of the machines concerned and their weight. Taking all these facts into consideration and having regard to the nature of structure erected for basing these machines, we are satisfied that the judicial member of the CEGAT was right in reaching the conclusion that what ultimately emerged as a result of processes undertaken and erections done cannot be described as "goods" within the meaning of the Excise Act and exigible to excise duty." 14). In the case of CCE, Ahmedabad vs. Solid and Correct Engineering Works and Others [2010 (252) ELT. 481(SC)], the Hon'ble Supreme Court has observed that 'attachment to earth' is a key factor for determining immovable nature of a property. Further, such attachment should be for permanent beneficial enjoyment of land to which it is attached. Moreover, in the case of Quality Steel Tubes (P) Limited v. CCE, UP [1995 (75) ELT (17) SC], the H....
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....Bhitri and it should be read as whole and not in isolation. Thus, it is settled law that clauses in the agreement should be read as a whole and not in isolation to understand the tenor and intention of the contracting parties. 18) . From the above discussion it gets established that the instant contract consists of transfer of property in goods, coupled with supply of services which leads to the inevitable conclusion that this is a case of Works contract, covered under the definition of "Works contract" defined under Section 2(119) of the CGST Act, 2017 supra. The details of works as enumerated above and as forthcoming from the contract, goes to show that the said project awarded to the Appellant by the JV is not as simple or movable. The work consists of an entire system comprising of a variety of different structures which are installed after a lot of prior work which involves Civil work, Civil engineering, Ground work, supply, Foundation work, Fabrication, various mechanical and electrical works etc. The magnitude of project covers a large area of about 40 thousand sq meter tailored specifically to fit the dimensions and orientation of the needs of the project. It is no one&#....