9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 987 - AAR - GSTWorks contract - Construction of Tunnel and Its applied works for NIRA-BHIMA Link No.5 of Taluka-Indapur, Dist -Pune, Under Krishna-Bhima Stabilisation Project Awarded by Godavari Marathwada Irrigation Development Corporation, Aurangabad - whether the said Contract is covered Under SI No.3 A, Chapter No.99 As per Notification No. 2/2018 - Central Tax (Rate) Dated 25.01.2018 w.e.f.25/01/2018? - whether the contract involves earth work? HELD THAT - From the meaning assigned the expression earth work as per Dictionary, the term earth work means the structure made from earth especially an embankment or construction made of earth. On perusal of tender documents, the present work is the construction of tunnel and its allied work and therefore said work cannot be considered as earth work contemplated by entry no. 3(vii) above. The function and power of the corporation have been listed in the Maharashtra Act XXIII of 1998. In general, it has been entrusted with the work of investigation, Planning, Designing of Projects, Maintenance of Completed Projects, Construction of Projects and irrigation Management of the Major, Medium and Minor projects in the Godavari River Basin. The projects comprise of Irrigation Hydroelectric projects (Except Bhandardara (Phase-I and II) and Ghatghar Hydro Electric Power Projects) along with the command area development and multipurpose schemes. The projects are to be State during the project time slice, it is expected to increase the performance efficiency of the completed projects and to complete further on going and new works, so as to utilize the water from Godawari Basin. The present transaction can be considered as other irrigation work.
Issues Involved:
1. Whether the contract is covered under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018 - Central Tax (Rate) dated 25/01/2018. 2. Whether the contract is covered under the term "Earth Work" and therefore covered under SI No. 3, Chapter No. 9954 as per Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017. 3. If covered under SI No. 3, Chapter No. 9954 as per Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017, what is the meaning of "Earthwork"? Detailed Analysis: Issue 1: Coverage under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018 - Central Tax (Rate) dated 25/01/2018 The applicant sought to determine if their contract falls under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018. The concerned officer argued that the work order, awarded in 2008-2009, primarily involves earthwork, which may now be completed, leading to the value of supply of goods constituting more than 25% of the composite supply. Moreover, the Godavari Marathwada Irrigation Development Corporation is a government undertaking, not a government entity. The authority concluded that the contract is not covered under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018. Issue 2: Coverage under the term "Earth Work" as per SI No. 3, Chapter No. 9954, Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017 The applicant contended that their work order, consisting predominantly of earthwork (92.66% of total work), should be covered under SI No. 3, Chapter No. 9954, as per Notification No. 31/2017. The authority examined the definition of "earthwork" from various dictionaries and sources, which generally refer to constructions made from earth, such as embankments or fortifications. The authority found that the construction of a tunnel and its allied works does not fall under the definition of earthwork as contemplated by entry no. 3(vii). Therefore, the contract is not covered under SI No. 3, Chapter No. 9954. Issue 3: Meaning of "Earthwork" under SI No. 3, Chapter No. 9954 Given the negative answer to Issue 2, the question regarding the meaning of "Earthwork" under SI No. 3, Chapter No. 9954 was not addressed. Conclusion: 1. The contract is not covered under SI No. 3A, Chapter No. 99 as per Notification No. 2/2018 - Central Tax (Rate) dated 25/01/2018. 2. The contract is not covered under the term "Earth Work" and therefore not covered under SI No. 3, Chapter No. 9954 as per Notification No. 31/2017 - Central Tax (Rate) dated 13/10/2017. 3. The question regarding the meaning of "Earthwork" was not answered due to the negative answer to Issue 2.
|
