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TMI Blog2018 (8) TMI 284X X X X Extracts X X X X X X X X Extracts X X X X ..... he activity of Body Building undertaken by the Applicant, carried out on the chassis supplied by the principal in the capacity of a job worker, would amount to ‘Composite Supply’ as define under CGST Act 2017/MPGST Act 2017. What would be the appropriate classification and applicable rate of tax for the above transaction? - Held that:- The classification in case of a composite supply has to be arrived at on the basis of ‘predominant element’ of a composite supply, which in turn would be the ‘Principal Supply. Needless to say that as per the definitions envisaged under the statute the predominant component of the composite supply involved in the activity of Body Building would determine the rate of tax applicable on such composite supply. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. At the outset we would like to make it clear the provisions of both the CGST Act, 2017 and the MPGST Act, 2017 are the same except for certain provisions. Therefore, unless a mention is specifically made to such similar provisions, a reference to the CGST Act, 2017 would also mean a reference to the same provisions under the MPGST Act, 2017. 2. BRIEF FACTS OF THE CASE: 2.1 M/s. Arpijay Fabricators Private Limited (hereinafter referred to as the Applicant ), having their registered office at 6, Manoramaganj, Indore and works at Plot No.506, 507, 508-A, 509 Sector III, Industrial Area, Pithampur District-Dhar (M.P.) are registered with the GSTN holding GSTIN 23AAECS9992C1Z5. 2.2 The Applicant is engaged in building bodies o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Praveen Gupta, Accounts Manager of the Applicant and Shri S. Soni, Assistant Accounts Manager of the Applicant appeared on behalf of the applicants for personal hearing on 22.06.2018 and reiterated the submissions already made in the application. They also sought a day s time to submit additional submission in respect of the questions posed before the Authority. 5.2 Shri Praveen Gupta, Accounts Manager of the Applicant submitted a letter dtd.23.06.2018 mentioning additional submissions for consideration. It was submitted that/... for fabricating the bus body, we first make the pipe structure and mount the same on the chasis. Outer panelling is done with GP Sheet and interior panelling with colour coated GP sheets. Flooring with chequere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd services. Thus, classification of this composite supply, as goods or service would depend on which supply is the principal supply which may be determined on the basis of facts and circumstances of each case. 6.2 Having regard to the Circular referred above, there is hardly anything left for the Authority to decide. The issue has been set to rest by the clarification. Accordingly, the activity undertaken by the Applicant has to be treated as Composite Supply as defined under Section 2(30) of the CGST Act 2017 and corresponding entry in MPGST Act, 2017, which is reproduced as under- Composite Supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is misplaced and arbitrary. The statute nowhere provides for predominant intention . The classification in case of a composite supply has to be arrived at on the basis of predominant element of a composite supply, which in turn would be the Principal Supply. Needless to say that as per the definitions envisaged under the statute the predominant component of the composite supply involved in the activity of Body Building would determine the rate of tax applicable on such composite supply. In case the Goods part is predominant, then the Composite Supply in this case would be governed by Chapter 87 depending upon the nature of body being built by the Applicant on the chasis supplied by the principal. In case, the Service part is predom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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