TaxTMI 
TaxTMI 
TaxTMI 
2023 (9) TMI 854
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....eference to the same provisions under UPSGST Act, 2017 and the vice versa. BRIEF FACTS OF THE CASE 1. M/s PurvanchalVidyutVitran Nigam Limited ('Appellant'), situated at Vidyut Nagar, Ground Floor, DLW Road, Bhikharipur, Varanasi Uttar Pradesh-22 1004 (the Appellant) is a registered assessee under GST having GSTN: O9AADCP4092M5ZT. 2. The Appellant is an Electricity Distribution Company having expertise in the field of electricity distribution and transmission. Being expertise in the field, the electricity lines are installed in the supervision of the appellant where electricity lines needs to be installed to supply the electricity at the designated location as per requirement of the customers. 3. As per appellant's submission the installation of lines is done at the cost of the customers and thus the entire cost is borne by the service recipients. But for safe and proper installation of line it is done in the supervision of the appellant. 4. The appellant submits that there are two methods of installation of electric lines for transmission to designated locations. One is where entire material and installation work is arranged by the appellant on behalf of the custo....
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....ied condition of submission of GST invoice by the customer/ service recipient. 8. Grounds of Appeal 8.1 The appellant being aggrieved by the impugned ruling have preferred an appeal on the following grounds- 8.2 The Authority for Advance Ruling has failed to appreciate the fact that as per Electricity Act, it is the duty of the distribution licensee to provide the electric plant or electric line for electric supply and the ownership of the infrastructural facility developed for the customer remains with the appellant. 8.3 The Authority for Advance ruling has held that the value of material etc. directly borne by the customer is not liable to be included in the value of taxable supply made by the appellant but in fact, in both methods, there is no difference as the ownership of the infrastructural facility, developed for the customer, is always with the appellant. 8.4 The Authority for Advance Ruling has held that the to avoid double taxation, the appellant should not charge GST on the cost of material with the observation that the consumer/recipient/contractor should have GST invoice of material and the same should be submitted to the appellant after completion of project. Thu....
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....n the supervision of the appellant to the designated locations as per requirement of the customers. 9.2 We find that the Appellant has adopted two types of modes for installation of electric lines (also called deposit work) to the designated locations as per requirement of the customers. One is where the entire material and installation work is arranged by the appellant on behalf of the customers and work is done in the supervision of the appellant. The appellant claims for reimbursement of material cost and installation expenses incurred on behalf of the customer on actual basis which is later reimbursed to the appellant by the customer and the net income charged by the appellant is supervision fee only. In the second mode the entire work with materials are arranged by customers and installation work is done by the contractors hired by the customers. In this case the role of the appellant is limited to supervision only and the appellant charge supervision fee from the customers. 9.3 The Authority for Advance Ruling vide impugned ruling held that in second mode where entire work with materials are arranged by customers and installation work is done by the contractors hired by the....
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....where all such cost are taken as reimbursement. 9.8 In shifting and dislocation services there may be following two types of supply- Case 1: Where dislocation/shifting services and supervision services both are supplied by DISCOM - In cases where both types of services i.e. dislocation/shifting and supervision services are supplied by DISCOM though there are two distinct supplies but the supplier is one so it is justifiable to charge GST on Total sum paid to the single supplier by the recipient. Case 2. Where dislocation/shifting services are supplied by third party contractor and supervision services are supplied by DISCOM-In this case there are following important points- a) In this case the works contract services supplied in course of dislocation /shifting are neither supplied by nor the consideration for the same has been received by DISCOM hence there is no supply of works contract services by DISCOM, b) In this case the ownership of the property being dislocated /shifted is vested with DISCOM, the DISCOM receives money in form of dislocation/shutting charges. The services supplied in such cases is related to an act of tolerance with respect to immovable property a....