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TMI Blog2018 (12) TMI 1277X X X X Extracts X X X X X X X X Extracts X X X X ..... mposite Contact, whether the Principal Supply will be the supply of the Twin Pipe Air Brake Systems or the supply of services of fitting these goods to the wagons, and what should be the appropriate classification of the supply and rate of tax. Advance Ruling is admissible on these questions under Section 97(2) (a), (e) & (g) of the CGST / WBGST Act, 2017 (hereinafter referred to as "the GST Act"). The Applicant further submits that the question raised in the Application is neither decided by nor pending for decision before any authority under any provisions of the GST Act. The officer concerned raises no objection. The Application is, therefore, admitted. 2. The Applicant submits that the scope of work conforms to the requirements of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or fabrication and assembling of the air brake system on the wagons. The term retro-fitment indicates the wagons that have otherwise been in operation are being upgraded by fitment of the twin pipe air brake system. Section 2(119) of the GST Act defines "works contract" as "a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract" Since clearly Twin Pipe Air Brake Systems are not immovable property, any contract involving the supply and installation of the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nation thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply". Again, Section 2(90) of the GST Act defines "principal supply" as "the supply of goods or services which constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary". It is, therefore, clear from the discussion above that the contract referred to by the Applicant is that of a composite supply within the meaning of Section 2(30), where the Twin Pipe Air Brake Systems are the Principal Supply as defined under Section 2(90) ibid. The entire contract value is, therefore, taxable at the rate applicable for su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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