TaxTMI 
TaxTMI 
2023 (1) TMI 182
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....he West Bengal Authority for Advance Ruling Regulations, 2018. 1.1 At the outset, we would like to make it clear that the provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression 'GST Act' would mean the CGST Act and the WBGST Act both. 1.2 The applicant submits that M/s Rites Limited, a Public Sector Undertaking owned by the Ministry of Railways, Government of India for and on behalf of the Eastern Coalfields Limited, Jhanjra Area, P.O. Loudoha, Dist-Paschim Bardhaman, PIN-713363 has awarded the applicant the following work vide Letter of Acceptance issued on 02.03.2021: "Construction of earthwork in formation, Major & Minor Bridge, ROB, Drain, P.Way Linking work including supply of Track Ballast, P. Way Fittings, ....
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....gs, Points & Crossings, Derailing Switches etc., Construction of Service Building including Internal Electrification, Installation, Testing & Commissioning of 140MT In-Motion Weigh Bridge and other allied works etc., (Pkg-III) in connection with the construction of New Railway siding at Jhanjra Area, ECL, Dist. Paschim Bardhaman, West Bengal. 2.3 The scope of work, according to the Letter of Acceptance dated 02.03.2021 issued by M/s RITES Limited includes: (a) Schedule 1-Formation Work; (b) Schedule 2-Minor & Major Bridge, Retaining Wall, Wharf Wall, Drain and allied works etc.; (c) Schedule 3-Supply of P.Way fittings & Channel Sleeper; (d) Schedule 4-Supply of Point & Crossing; (e) Schedule 5-P.Way Work; (f) Schedule 6-Road Work; (g) Schedule 7-Civil Works for Building Construction; (h) Schedule 8-Supply & Installation of Weigh-bridge; (i) Schedule 9-Any other Unforeseen Items; (j) Schedule 10- Electrical works for Weigh Bridge, TMS Building, FOIS Building, Sub Station, Building, DG Room, Pump Room, Panel Building, Augmentation of TRD Depot, Switching Post, Switch panel room etc. 2.4 Th....
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....s 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; The applicant is of the view that the work being executed by him is in the nature of new works and, thus, would be covered under the aforesaid definition of original works. 2.8 Further, the applicant, in support of his contention that the instant work is pertaining to railways, has referred to sub-section (31) of section 2 of the Railways Act, 1989 which is reproduced herein under: "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, power supply and distribution installations used for the purposes of, or in connection with, a railway; (d) all rolling stock, stations, offices, warehou....
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....hority for Advance Rulings, Karnataka - M/s Quatro Rail Tech Solutions Limited vide Advance Ruling No. KAR ADRG 93/2019 dated 27.09.2019; (iii) The Authority of Advance Ruling, Chhattisgarh- Triveni Engicons Pvt. Ltd. vide Advance Ruling No.STC/AAR/01/2022 dated 02.05.2022. 3. Submission of the Revenue The submission of the officer concerned from the revenue is reproduced in verbatim: 3.1 It appears from the Work order of M/s RITES Limited received a Works Contract from M/s Eastern Coalfields Limited a Private Limited Company owned by M/s Coal India Limited, Ministry of Coal, Government of India for constructing a new Railway siding at their Jhanjra Area of ECL, Dist - Paschim Bardhaman, West Bengal and M/s RITES Limited a Public Undertaking Company owned by Indian Railway sub-contracted the same work to the applicant i.e., M/s Triveni Engicons Private Limited holder of GSTIN 19AABCT4589R1ZA. M/s Eastern Coalfields Limited constructing a private railway siding for carriage of coal from their site at Jhanjra Area, Dist - Paschim Burdwan, West Bengal to all over India and the said work is "commercial" in nature. However, meaning of "railway" defines in Section 2(....
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....ng, 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." After scrutiny of Letter of Acceptance of M/s RITES Limited issued to M/s Triveni Engicons Private Limited holder of GSTIN- 19AABCT4589R1ZA, registered address at Flat No-2B, 2nd Floor, Rishikesh Apartment, Ashutosh Chowdhury Avenue, Kolkata- 700019 that the Work Order is composite in nature. Value of Supply of Goods or Service cannot be divided from the Work order / letter of acceptance. It appears from the schedule from 1 to 10 with description of schedule of work of the Letter of Acceptance wherein value of Goods and service not mentioned separately. So, in the above discussion it appears that the Work awarded by M/s RITES Limited to M/s Triveni Engicons Private Limited can covered under the definition of Works Contract as defined under Section 2(119) of the CGST Act, 2017. 3.3 The rate of GST for the construction of rail infrastructure facilities to othe....
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.... supply of works contract; • The supply is to made by way of construction, erection, commissioning or installation of original works; and • It must be pertaining to railways. Whether the work being executed by the applicant can be treated as 'works contract' as defined u/s 2(119) of the GST Act: 4.4 The definition of works contract under the GST Act is strictly in relation to contract of any immovable property i.e., any work shall be treated as works contract if the same is done for any immovable property and involves transfer of property in goods in the execution of such contract. The term 'immovable property' has not been defined under the GST Act. Therefore, reference may be drawn to other law which inter alia includes section 3(26) of General Clauses Act, 1897 which defines 'immovable property' as under: "immovable property shall include land, benefits to arise out of land and things attached to the earth, or permanently fastened to anything attached to the earth." Further, for the purpose of interpretation of the expression "attached to the earth", section 3 of the Transfer of Property Act, 1882 may be referred to which reads as foll....
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....ng... • Construction of reinforced earth retaining walls and load bearing pure abutments with facia panels including design of reinforced earth system... On due consideration of the nature of works being undertaken by the applicant as detailed in the scope of work, we are of the opinion that the work is in relation to immovable property and certainly involves transfer of property in goods thereby qualifies to be a 'works contract' as defined in clause (119) of section 2 of the GST Act. Whether the said work can be considered as 'original works': 4.6 The term 'original works' has been defined in clause 2 (zs) of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 which reads as under: "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; In the instant case the applicant executes construction work in connection of New Railway Sidings at Jhanjha Area of Eastern Coalfield Limited....
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.....2016 has also recognised 'private siding' for railway freight services. Relevant portion of the said circular may be reproduced herein under: o Siding shall normally take off from the existing serving station. However, in case when it is operationally not feasible to provide a connection from an existing serving station, on Party's request for a connection from a location between two existing stations at his own cost, provision of a Block Hut/Block Station with required points & crossings may be considered, provided: (i) All aspects including the operational feasibility of constructing a new Block hut/Block Station and impact of splitting of block section on train operation have been examined to the satisfaction of the Zonal Railway and are certified by the COM of the Railway.[Para 6.10] o Responsibilities of Siding Owner- (i) The siding owner shall have the option to maintain the track etc. of his siding either himself or through the Railways. The owner shall enter into an Agreement with the concerned Division regarding the Operation &maintenance of his siding. (ii) Siding owner shall, at all times, maintain his siding properly, so tha....