TaxTMI 
TaxTMI 
2025 (3) TMI 310
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....like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean reference to the corresponding similar provisions in the GGST Act, 2017. 2. M/s. Tecnimont Private Limited, [for short 'appellant'] is a wholly owned subsidiary of Tecnimont S.P.A. Milan, Italy is an EPC [Engineering Procurement and Construction] Company and is registered with the department. 3. Briefly, the relevant facts concerning this appeal as is canvassed by the appellant, is as under: • that they have entered into a turnkey contract with IOCL [Indian Oil Corporation Ltd], for executing EPC work of Acrylic Acid Unit....
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.... 1. Whether the transaction of sale of goods by Tecnimont Pvt. Ltd. (TCMPL) to Indian Oil Corporation Ltd. (IOCL) on High Seas Sale basis in terms of Contract No. 44AC9100-EPCC-1 would be covered under Entry No. 8(b) of Schedule III of the CGST Act and shall be excluded from the value of work contract service for charging GST? 2. Whether the transaction of sale of goods on high seas sale basis by the Applicant to IOCL in terms of Contract No. 44AC9100-EPCC-1 would be treated as works contract and whether Applicant is liable to charge GST on the goods sold on high seas sale basis to 1OCL? If yes, what will be the applicable rate of tax on such goods supplied? 5. Consequent to personal hearing, the GAAR [Gujarat Authority....
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.... longer res integra having been decided by the Hon'ble Chhattisgarh High Court in the case of M/s. Shree Jeet Transport Writ Petition (T) No. 117/2022 decided on 17.10.2023 wherein though the recipient of the supply was legally bound via the agreement to provide for free diesel, yet the Hon'ble High Court, held that the free supply of diesel would form part of the transaction value, for the purpose of GST. • the argument that it is a divisible contract entailing [a] supply of imported goods and [b] supply of services is not borne out from the reading of the contract and the relevant documents thereof. • that the imported goods supplied on HSS basis are subject to tax as intra state supply belies fact, since what is....
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....hat such sale is a distinct element in the contract & is separately identifiable from the rest of the EPC work; • that they would like to rely on the case of BSNL 2006 (2) STR 161 (SC) wherein it was held that whether a contract would represent two separate transaction and separate rights arising out of the contract depends entirely on the intention of the parties; • that the contract cannot be treated as an indivisible contract since imported supply is a distinct supply; • that they would like to rely on the case of Power Grid Corporation Ltd 2007 (108) ITD Hyd, Gannon Dunkerly & Company 1958 AIR 560, L.S. Chandramouli and Co 1966 (18) STC 325, Mahindra and Mahindra 1995 (76) ELT 481 SC, Mirah Exports....
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.... (i) that the contract is a divisible contract; (ii) that the provisions of section 15 (2) (b) of the CGST Act, 2017 has been mis-interpreted; (iii) that the reliance on the judgement of M/s. Shree Jeet Transport of the Hon'ble Chhattisgarh High Court is misplaced; (iv) that even if the contract is considered indivisible, no tax can be levied on that part of the goods which are sold on HSS basis; (v) that the sale of imported materials would not form part of the composite supply & hence would not form part of the overall works contract; (vi) that the sale of goods on HSS suffers IGST & hence treating it as a part of the works contract would result in double taxation. 11. Moving on to the fi....
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....ds [supplied on HSS basis]. Therefore, the submission that the value is not to be included in the transaction value in respect of works contract service is legally not tenable more so since as is already mentioned, the applicant is contractually bound/liable to supply both the goods and the services. The averments even otherwise, stand answered in paragraph 34 of the impugned ruling. Hence, we agree with the finding that in terms of section 15, ibid, the value of such imported goods invariably forms an integral part of the Transaction value. Thus, the averment that the GAAR had mis-interpreted the provisions of section 15 (2) (b) of the CGST Act, 2017 is not a plausible argument. 14. The next averment raised is that the sale of imported ....