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TMI Blog2018 (9) TMI 1645X X X X Extracts X X X X X X X X Extracts X X X X ..... Purchase Agreements with the Bulk supplies, generating companies, Central and State generating stations, regional Electricity Board/neighboring States/utilities and other entities; to execute agreements for sale of power to other distribution companies and other persons and to coordinate, aid and advise on the activities of other companies and concerns. including subsidiaries, associates and affiliates, engaged in generation, transmission, distribution, supply and wheeling of electrical energy. The projects under DDUGY, IPDS, ADB, SSTD, Saubhagya Yojna, FSP and all other schemes of governments are carried out for business purpose and the benefit of Concessional Rate of 12% (6% under Central tax and 6% State tax) as per notification under is not available to the applicant on works pertaining to construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration, which are carried out in respect of projects under DDUGY, IPDS, ADB, SSTD, Saubhagya Yojna, FSP and all other schemes of governments as the same is undertaken for the business purpose - The composite supply of works contract as defined at Section 2 of CGST Act '2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TIN 23AADCM7397N1ZU. 3.2. The Applicant for the above purpose also carries supply and erection work. 3.3. The Applicant cites Applicability of clause(vi)(a) of Sr. No. 3 of table of Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 for applicability of rate of tax on the works contract undertaken by it. 4. QUESTION RAISED BEFORE THE AUTHORITY - The applicant wishes to know whether clause(vi)(a) of Sr. No. 3 of table of Notification No. 11/2017-Central Tax (Rate) dated the 28th June, 2017 is applicable on the works contract undertaken by it. And determination of liability to pay Tax. 5. DEPARTMENT'S VIEW POINT- The concerned officer submitted that the nature of works contract undertaken by the applicant doesn't come under the category for which the notified rate of tax is 12%(6%CGST and 6% SGST) but it will attract 18%(9% CGST and 9% SGST). 6. RECORD OF PERSONAL HEARING - Shree Abhay singi, C.A. and Shree Anirudh Tiwari, Accounts Officer Appeared for personal hearing on 06.07.18 and they reiterated the submission already made in the application and attached additional submission which goes as follow - 6.1. The Company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, vide Notification No. 31/2017 - Central Tax (Rate), Dated 13/10/2017, Government of India substitute the word Central Government, State Government, Union Territory, a local authority, a Governmental Authority or a Government Entity in place of Central Government, State Government, Union Territory, a local authority or a Governmental Authority Also, vide said notification the definition of Government entity is provided, which is reproduced as under - Government Entity means an authority or a board or any other body including a society, trust, corporation, i) set up by an Act of Parliament or State Legislature; or ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government. State Government, Union Territory or a local authority. . 6.9 In view of above, it is submitted that the provisions referred above issued under the Notification No. 24/2017-Central Tax (Rate), Dated - 21/09/2017 and Notification No. - 31/2017 - Central Tax (Rate), Dated - 13/10/2017 is applicable on the Company. 7. DISCUSSIONS AND FINDINGS: 7.1. First of all we must look in the con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7.7. The projects are undertaken for construction of electricity distribution lines, sub-stations and other infrastructure which arc meant predominately for sell of electricity in urban and/or rural area. 7.8. As per the Memorandum of Association of the Company, Main objects to be pursued by the Company on its incorporation is to carry on the business of purchasing, selling, importing, exporting, selling, trading of electrical energy, including formulation of tariff, billing and collection thereof; to execute Power Purchase Agreements with the Bulk supplies, generating companies, Central and State generating stations, regional Electricity Board/neighboring States/utilities and other entities; to execute agreements for sale of power to other distribution companies and other persons and to coordinate, aid and advise on the activities of other companies and concerns. including subsidiaries, associates and affiliates, engaged in generation, transmission, distribution, supply and wheeling of electrical energy. 7.9. Thus, the projects under DDUGY, IPDS, ADB, SSTD, Saubhagya Yojna, FSP and all other schemes of governments are carried out for business purpose and the be ..... 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