TaxTMI 
TaxTMI 
2022 (11) TMI 550
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....cord, or is brought to its notice by the concerned officer, the jurisdictional officer or the applicant within a period of six months from the date of the order. Provided that no rectification which has the effect of enhancing the tax liability or reducing the amount of admissible input tax credit shall be made, unless the applicant or the appellant has been given an opportunity of being heard. 2. Under Section 103 (1) of the Act, this advance ruling pronounced by the Appellate Authority under Chapter XVII of the Act shall be binding only (a) On the applicant who had sought it in respect of any matter referred to in sub-Section (2) of Section 97 for advance ruling; (b) On the concerned officer or the jurisdictional offi....
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....ZQ, is a civil engineering construction company. They are engaged in the construction of highway, tunnel, bridge, mass rapid transit and high speed rail projects. The appeal is filed against the Order No.13/2021 dated 08.10.2021("impugned order") passed by the Telangana State Authority for Advance Ruling (Goods and Services Tax) ("Advance Ruling Authority"/ "AAR"/ "lower Authority"). Brief Facts: 2. M/s Continental Engineering Corporation, F.No. 102, 1st Floor, Boston Towers, Upparpally, Rajendernagar, Ranga Reddy, Telangana - 500 048. They are engaged in the construction of highway, tunnel, bridge, mass rapid transit and high speed rail projects. 3. The applicant has sought clarification before the lower authority in respect of fo....
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....nsideration received by arbitral tribunal is taxable on reverse charge basis under CGST & SGST Act @ 9% each. The service tariff code is 998215. In the present case, Arbitration as service was supplied independently after the introduction of GST i.e., the tribunal was constituted conclusively on 20.11.2017 and rendered its orders on 09.05.2019 and therefore this supply is liable to tax on reverse charge basis under GST. 2. Liquidated damages: These damages are claimed by the applicant from the contractee due to the delays in making available possession of site, drawings & other schedules by the contractee beyond the milestones fixed for completion of project. These damages are consideration for tolerating an act or a situation aris....
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....n award on 09.05.2019. Therefore the time of supply of this service as per Section13 of the CGST Act is 09.05.2019. The Consideration received for such forbearance is taxable under CGST and SGST @ 9% Each under the chapter head 9997 at serial no. 35 of Notification No.11/2017-Central/State tax rate. 3. Interest on Arbitration Amount: The applicant is claiming interest on the amounts determined by the arbitrary tribunal under various heads. Under Section 15(2)(d) of the CGST/SGST Acts interest for delayed payment against a supply is consideration which is taxable under CGST/SGST Acts. Therefore the interest on amounts exigible to tax under CGST/SGST forms part of value of taxable supply. 4. Aggrieved by the impugne....
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.... being contested and consider their appeal favourably. Discussions and Findings: 9. The applicant has sought rulings before this Appellate Authority on the following questions: a) Whether GST is payable on the claim of INR Rs. 2,20,00,000/-for the HGCL share of sitting fees and other expenses paid by the applicant on the directions of the Arbitrators for an amount. b) Whether GST is payable on the claim of INR Rs.1,15,80,62,000/-(including interest amount) on account of compensation of additional cost incurred due to delay in issue of drawings and failure of HGCL to handover site on time and refusal to issue the taking over certificate. c) If the answer to questions (a) and (b) are in affirmative, then under....
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....of drawings and failure of HGCL to handover site on time and refusal to issue the taking over certificate 11.1. On this issue, the lower authority had, interalia, observed that these damages are claimed by the applicant from the contractee due to the delays in making available possession of site, drawings & other schedules by the contractee beyond the milestones fixed for completion of project. These damages are consideration for tolerating an act or a situation arising out of the contractual obligation. As per the issues mentioned in the arbitration award, clauses 6.4 and 42.2 of the General Conditions of Contract (GCC) specifically state that in case of any delay in issuance of drawings or failure to give possession of site the enginee....