TaxTMI 
TaxTMI 
2023 (7) TMI 183
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....r 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' or 'GST Act, 2017' would mean the CGST Act, 2017 and the WBGST Act, 2017 both. 1.2 The applicant is engaged in the business of manufacturing and selling pumps for various applications. The applicant also provides services in relation to installation, commissioning, repairs and maintenance of such pumps. The applicant has informed that their manufacturing units are located in Maharashtra and Tamil Nadu, and the goods manufactured at these locations are transferred to their warehouses in other states and sold locally from such warehouses. 1.3 This advance ruling ap....
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....e tender notice. The said tender document was accepted by KMC on 26th December 2019, pursuant to which the work order number DR/PBPS/M/32/18-19 dated 19th February 2021 was issued by KMC to the applicant, the copy of which was also submitted by the applicant. 2.3 The applicant has submitted that this supply is a composite supply of works contract to a local body, i.e., Kolkata Municipal Corporation (KMC) intended to be used in a sewerage treatment plant. Further, the applicant has stated that in this case, '... the contract executed with KMC is a turnkey contract for repairs of existing sewerage treatment plant that includes manufacturing of pumps and carrying out civil works in the form of construction of appropriate foundation for its erection and installation along with mechanical works in the form of earthing and bonding. A pump that is unsupported to the earth will not serve its purpose. Thus pumps are required to be fastened to a foundation for the sake of permanency and its effective operation...'. 2.4 The applicant thus contends that the instant supply is a composite supply comprising supply of goods and services both and such supply is related to immovable property t....
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...., or alteration of,- (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal. 6 After amendment made vide Notification No. 31/2017-Central Tax (Rate) dated 13.10.2017 (iii) Composite supply of works contract as defined in clause (119) of section 2 of the West Bengal Goods and Services Tax Act, 2017, supplied to the Central Government, State Government, Union territory, a local authority, a Governmental Authority or a Government Entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of,- (a) a historical monument, archaeological site or remains of national importance, archaeological excavation, or antiquity specified under the Ancient Monuments and Archaeological Sites and Remains Act, 1958 (24 of 1958); (b) canal, dam or other i....
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.... execution of such contract; As per the aforesaid definition, the essential feature for a service to be a 'works contract' service is that whether the service is in relation to an immovable property or not. Consequently, it needs to be examined whether the supply in this case could be considered as pertaining to 'immovable property'. Section 3(26) of the General Clauses Act, 1897 gives the following definition to 'immovable property' : "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; 4.3.2 The pump in question could not be classified as land or benefits to arise out of land. On examining further, it could be observed that even though the term "attached to the earth" has not been defined in the General Clauses Act, 1897, Section 3 of the Transfer of Property Act, 1882 gives the following definition: "attached to the earth" means - (a) rooted in the earth, as in the case of trees and shrubs; (b) imbedded in the earth, as in the case of walls or buildings; or (c) attached to what is so imbedded for the permanent benefici....
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....e of which is pumping of sewerage for further treatment & disposal. The pump is essential to this activity and is thus expected to be installed and fastened at its place of installation throughout its operational life, and is thus installed for the permanent beneficial enjoyment of the civil structure to which it is attached to. Thus, in light of the facts of the case, the pump on installation would be an immovable property, and thus the installation, repair and maintenance of pump at the sewerage pumping station would qualify to be 'works contact service' as per Section 2(119) of GST Act. 4.3.6 The applicant has submitted a copy of the Notice inviting e-tender No.-DR/PBPS/M/32/18-19/2 (Tender Notice) issued by the Kolkata Municipal Corporation, having the work description as: 'Manufacture, supply and installation of two nos. 240 cusec (480 m3/min) at 3 m head axial flow column type submersible pump motor units in place of poor performing old pump at Palmer Bridge Drainage Pumping station and at Ballygunge Drainage Pumping station under KMC' Further, the Tender Document is also submitted by the applicant, which mentions the conditions, responsibilities and technical ....
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....s case, subject to other conditions being fulfilled. Purpose of sewerage disposal: 4.5.1 The tender is issued by the Sewerage and Drainage (S&D) department of the KMC. The tender document itself states that the supply is in the nature of replacing the poor performing old pumps at the Palmer Bridge Drainage Pumping station and at the Ballygunge Drainage Pumping station. The applicant has also submitted the copy of the tender document issued by KMC, the catalogue of the submersible pump which is to be installed, pictures of the old and new pumps from the site of installation, for better understanding of the nature of supply. 4.5.2 The purpose of the pump in this case is pumping the sewerage from one location to other, which is an integral part of the process of sewerage disposal. Further, the applicant has also submitted a document issued by the Executive Engineer (Mech.) and Asst. Engineer (Mech.) from the S&D department of KMC which states that: 'it is to confirm that the above mentioned contract is for disposal of drainage/sewage generated at the KMC area under the Kolkata Municipal Corporation and is in the nature of Composite supply of Works Contract'. 4.5.3 On the b....