TaxTMI 
TaxTMI 
2025 (8) TMI 547
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.... 3. In view of the above, the applicant has sought advance ruling in respect of the following questions: a) What is the HSN Code and GST rate applicable, in case of our proposed pure supply of Artificial Turf/ Artificial Grass and other sports flooring? b) What is the HSN Code and GST rate applicable, in case of our proposed supply and installation of Artificial Turf/Artificial Grass and other sports flooring which will be in the nature of works contract? 4. Admissibility of the application: The applicant sought advance rulings on classification of "Artificial Turf/Artificial Grass" and also classification of "Artificial Turf/Artificial Grass along with installation" and the GST rate applicable thereon. The applicant claims that the questions are covered under "Classification of goods and/or services or both" and "determination of the liability to pay tax on any goods or services or both" and hence the application is admissible under Section 97(2)(a) and 97(2)(e) of the CGST Act 2017. 5. Brief Facts of The Case: The applicant has furnished the following facts relevant to the issue: 5.1 The Applicant proposes to commence a business with a wide range of art....
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....ts and landscaping areas and comes at a economical price 5.3. The Applicant stated that basically their proposed business operations contain both i) Pure supply of the proposed products and ii) Supply and installation of the proposed products. 6. Applicant's Interpretation of law: The applicant submitted their interpretation of law in respect of the questions, at para 3 above, on which the advance rulings have been sought for, inter alia stating as under: 6.1. The supply of Artificial Turf is a supply of goods which is chargeable to tax @ 12%. The details of Entry as per Notification 1/ 2017 dated 28th June 2017 is as under. Schedule II - 6% S. No. Chapter/Heading/Sub-heading/Tariff item Description of Goods 144. 5703 Carpets and other textile floor coverings (including Turf), tufted, whether or not made up 6.2. Supply and installation of Artificial Turf/Artificial Grass and other sports flooring is in the nature of Composite supply of works contract. 6.3. Reusability of the Artificial Turf/Artificial Grass installed on basis of the specific requirement of the Customer; a) The installation of Artificial Turf/Grass are reusable subject to....
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....ub section (119) of section 2 of the Central Goods and Services Tax Act, 2017, which is provided to a Local Authority, by way of Construction, erection, commissioning, installation. Completion, fitting out, repair, maintenance, renovation, or alteration of a Civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession and therefore liable to tax rate of 18% under Entry no. 3(xii) of notification no. 11/2017-Central Tax (Rate) dated 28th June 2017 as amended. The relevant notification is reproduced as below: S. No. Chapter, Section, Heading or Group Service Code (Tariff) Service Description 1. Chapter 99 All Services 2. Section 5 Construction Services ... 3. Heading 9954 (Construction Services) i ...................... ... ii ...................... ... iv. ...................... ... v ...................... ... vi. ...................... ... vii....................... ... viii. ...................... ... ix...................... ... x ...................... ... xi ...................... ... xi....
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....ply of components of solar power plant and services of design, erection, installation etc. are naturally bundled and hence, the same can be treated as a 'composite supply'. Similar view was also taken in the following cases; iii. In Re: Premier Solar Systems (P) Limited, 2019 (23) GSTL 234 (AAR-GST). iv. In Re: NR Energy Solutions India Pvt. Ltd. 2019 (26) GSTL 280 (AAR-GST). v. Further, reliance is placed on the settled principle of law that 'A contract must be read as a whole', In M.O.H. Uduman and Ors. v. M.O.H. Aslum, AIR 1991 SC 1020, the Apex Court held that it is settled canon of construction that a contract of partnership must be read as a whole and the intention of the parties must be gathered from the language used in the contract by adopting harmonious construction of all the clauses contained therein. The cardinal principle is to ascertain the intention of the parties to the contract through the words they have used, which are key to open the mind of the makers. Similar observations were reiterated in the case of Novartis Vaccines and Diagnostics Inc. vs. Aventis Pharma Limited, 2010 (2) Bom CR 317. vi. Further the supply and installa....
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....goods attached to earth become immovable and do not satisfy the test of goods. A tube mill was immovable since it was not transferable or transportable. ii. In the case of CCE, Ahmedabad v. Solid and Correct Engineering works and others, (2010) 4 TMI 15 (SC), the Supreme Court observed that 'attachment to earth' is a key factor for determining immovable nature of a property. Further, Further, such attachment should be for permanent beneficial enjoyment of land to which it is attached. iii. In the case of Virgo Industries (Eng.) Pvt Ltd vs CCE, Chennai, 2015 (4) TMI 247 (Mad.), the Madras High Court observed that an item fixed to the earth can continue to be movable if the same is capable of being shifted to another place without having to dismantle the same into constituent components and without causing substantial damaging to such individual components. iv. In the case of T.T.G. Industries Ltd. v. Collector of Central Excise 2004 (5) TMI 77 SC, the Supreme Court treated a machine as immovable owing to permanency in its installation. 6.9 Further we submit that any item qualifies as an immovable should satisfy the following parameters. i. Equi....
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..... The applicant sought classification of their products when supplied as goods and also the classification of the said products when supplied & installed and the applicable rate of GST thereon. We proceed to consider one question at a time and examine. The first question is about the classification of artificial turf / artificial grass, when supplied as goods, and GST rate applicable thereon. In this regard, we invite reference to Explanations (iii) and (iv) appended to the Notification No. 01/2017-Central Tax (Rate), dated 28.06.2017, which are relevant to determination of Classification of a product & are as under: (iii) "Tariff item", "sub-heading" "heading" and "Chapter" shall mean respectively a tariff item, sub-heading, heading and chapter as specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). (iv) The rules for the interpretation of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), including the Section and Chapter Notes and the General Explanatory Notes of the First Schedule shall, so far as may be, apply to the interpretation of this notification. Accordingly we make a reference to the Section Notes and Chapter Not....
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....ed, specifies that the goods with the description "carpets and other textile floor coverings (including Turf), tufted, whether or not made up", falling under chapter heading 5703 attracts GST @ 12% (CGST 6% and SGST 6%), which is as appended below; Schedule II-6% S.No. Chapter / Heading / Subheading / Tariff item Description of Goods 144. 5703 Carpets and other textile floor coverings (including Turf), tufted, whether or not made up In view of the above, the impugned product merits classification under chapter heading 5703 and attract 12% GST in terms of entry number 144 of Notification 1/2017-Central Tax (Rate) dated 28.06.2017, as amended. 14. Now we proceed to consider the second question which is about classification of the supply when the impugned product is supplied and installed, which will be in the nature of works contract. It is observed that the applicant intend to classify the supply of the impugned product and its installation as works contract, under SAC code 995427. The issue involves classification of the service and thus, we invite reference to Explanation (ii) at para 4, of the Notification No. 11/2017-Central Tax (Rate), dated 28.06.....
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....c parks and gardens, zoological and botanical gardens It is clearly evident from the above that the SAC 995428 covers General construction services of outdoor sport and recreation facilities which includes construction services for grounds for sports generally played in open air such as football, baseball, rugby, track and field, tennis, car or bicycle races and horse races. In the instant case the applicant provides the facilities of installation of artificial Turf/Grass on the football ground etc., by way of attaching the artificial Turf/Grass to the earth, an immovable property, through adhesive. In the instant case, it is an admitted fact that the artificial Turf/Grass installed is reusable subject to loss of adhesive material and negligible damage to the main item i.e. Turf/Grass, as it is installed on the specific design and dimension requirement of the customer. Thus the reusability of the artificial Turf/Grass is subject to losses. Therefore the impugned service is covered under SAC 995428. 16. Now we proceed to examine whether the impugned services amounts to works contract or not. In this regard we invite reference to Section 2(119) of the CGST Act 2017, wherein ....