TaxTMI 
TaxTMI 
2023 (12) TMI 1271
X X X X Extracts X X X X
X X X X Extracts X X X X
....uestion- 1. Whether the work done by the applicant in Transmission Line under the supervision of MVVNL comes under the definition of supply as per section 15 (2)(b) of UP GST Act, 2017 ? 2. Whether GST is to be paid to MVVNL on the full amount of work done for load sanction of 11 KV lines by applicant? 3. Without prejudice to the submissions made hereinabove and hereinafter, if the applicant pays GST on the entire value of work done to its contractors and also to MVVNL, then how will this payment of same amount of GST on the same transaction to two separate entities, not constitute double taxation? 3. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. The applicant has submitted that- 1. That the M/s Spring Infrastructures) hereinafter referred as the Firm' is a Partnership Firm, having registered office at CP-138, Viraj Khand, Gomti Nagar, Lucknow -226010. 2. That the applicant is primarily engage in Land Developer business i.e Sale of Developed Land, having projects in diffe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he same, has done the work of shifting/modification which includes cost of dismantling the existing section, civil work for erection and cost of new work according to the specification of MVVNL, Therefore the aforesaid transaction is done between applicant and its contractor, who has made the required purchases and has completed the work according to the specification of MVVNL. 13. That the MVVNL is demanding 18% GST on the estimated cost because work done as per MVVNL. It is an asset transferred from applicant to MVVNL and in this regard it is submitted that prior to and even after the shifting/modification the Transmission line belongs to MVVNL. That it is hereby clarify that the ownership and operational control of the Transmission line remains with MVVNL and are not at all transferred in any form to applicant. The applicant is only concerned with the shifting of these Transmission line from one place to another for obtaining safe clearance and that too is done under the expert supervision of MVVNL. The entire shifting/modification of transmission line work is done by the contractor of the applicant. The MVVNL only supervises the Transmission line work and for this supe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....applicant. The applicant is only concerned with the shifting/modification of these transmission lines from one place to another for obtaining safe clearances and that too is done under the expert supervision of MVVNL 3. That the MVVNL does not transferred any asses to the applicant. The transmission lines were the assets of MVVNL prior to and even after the shifting or modification. That even during the process of shifting, the entire revenue generation from the operation of these transmission lines belongs to MVVNL and not the applicant. 4. That the MVVNL has not supplies any material to the applicant which can be used in the shifting/modification of the transmission lines. Each and every material used in the shifting/modification was purchased by the contractor of the applicant on which ITC has been claimed by the contractor. 5. That the transmission lines are the assets of MVVNL prior to and even after the shift. The applicant does not claim any assets. Therefore the transmission lines were and will remain the assets of MVVNL and not the applicant. 6. That if there is no transfer of assets, it means that there is no supply in the furtherance o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the contractor or supplier because shifting/modification of Transmission line work is not done by MVVNL and the transmission lines are the assets of MVVNL and not applicant. There is no contractor contractee relation between the applicant and MVVNL The only relation is that the assets belonging to MVVNL were occupying the space, which was intended to be used by the applicant. And therefore, the applicant is only shifting those assets after prior notice and seeking technical assistance from MVVNL to some other place. 12. That hypothetically, if the applicant complies with the demand notice issued by MVVNL, then the natural and obvious consequence will be that the applicant will end up paying the value of the work of shifting/modification of the transmission lines to its contractor along with GST and also the same amount of GST to MVVNL as well. This will be a clear cut case of double taxation as the same amount GST is being paid to the contractor as well as MVVNL in respect of the same transaction. This kind of transaction is not envisaged by any applicable law. 13. That as a general principal, indirect tax is always livied on the basic value of any goods sold/tr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... section 95 of the CGST Act 2017 and the same is reproduced as under: Section 95. Definitions of Advance Ruling.- In this Chapter, unless the context otherwise requires,- (a) "advance ruling means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; (b) "Appellate Authority" means the Appellate Authority for Advance Ruling referred to in section 99; (c) "applicant" means any person registered or desirous of obtaining registration under this Act; The above clause (a) of section 95 clearly provides that the applicant of Advance Ruling should be related to a taxpayer who supplies the goods or services or both or who proposes to make supplies in future. As the wording says the "supply of goods or series or both" and not the "receipt of goods or services, or both", it is implied that the applicants seeking Advance Rulings should be the suppliers and not the recipients. The meaning of the applicant d....