9911796707
TMI Blog2018 (5) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... Packages split up into two separate sets of contracts - one for supply of materials at exfactory price (hereinafter the First Contract), and the other for supply of allied services like survey and erection of towers, testing and commissioning of transmission lines etc (Second Contract), which also includes inland/local transportation, in-transit insurance, loading/unloading for delivery of materials and storage of them at the contractee's site. The contractee agrees to reimburse the actual GST payable, except on the price component for inland/local transportation, in-transit insurance and loading/unloading. The applicant raises separate freight bills on the contractee as per the rate schedule annexed to the Second Contract. 2. The Applican ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng has no mandate to deal with questions involving inter-state supply. Reference is, therefore, being made to analogous Notifications under the GST Acts, viz Notification No. 12/2017-Central Tax (Rate) dated 28/06/2017 (1136-FT dated 28/06/2017 under State tax) (hereinafter "the Exemption Notification"). 5. Serial no. 18 of the Exemption Notification exempts services by way of transportation of goods by road, except the services of a GTA. In his written submission the Applicant admits that he is not transporting the goods, but hiring the service of a transport agency. Similarly, the Applicant is not providing the insurance service, but buying such services from an insurance service provider. The Applicant is, therefore, the recipient of su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout a place of supply. As the goods to be supplied under the First Contract involve movement and/or installation at the site, the place of supply shall be the location of the goods at the time when movement of the goods terminates for delivery to the recipient, or moved to the site for assembly or installation [refer to Section 10(1) (a) & (d) of the IGST Act, 2017]. The First Contract, however, does not include the provision and cost of such transportation and delivery. It, therefore, does not amount to a contract for 'supply of goods' unless tied up with the Second Contract. In other words, the First Contract has "no leg' unless supported by the Second Contract. It is no contract at all unless tied up with the Second Contract. 10. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this definition, the 'cross fall breach clause', in the present context, settles unambiguously that supply of goods, their transportation to the contrctee's site, delivery and installation, erection of towers and testing and commissioning transmission lines and related services are not separate contracts, but form only parts of an indivisible composite works contract supply, as defined under Section 2(119) of the GST Act, with 'single source responsibility'. 12. Composite nature of the contract is clear from the clause that defines satisfactory performance of the First Contract (supply of goods) as the time when the goods so supplied are installed and finally commissioned in terms of the Second Contract. In other words, the First Contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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