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TMI Blog2018 (5) TMI 1848X X X X Extracts X X X X X X X X Extracts X X X X ..... s movable property and not immovable property. Thus, the appellant is not entitled to avail input tax credit of Central Excise Duty and VAT paid on pipes, under sub-section (3) and (6) of Section 140 of the CGST Act, 2017 and the GGST Act, 2017. Works contract - Activity of construction of pipeline network which becomes immovable property - levy of GST - Held that:- As per clause 6(a) of the Schedule II read with Section 7 of the CGST Act, 2017 and the GGST Act, 2017, the composite supply, namely works contract as defined in clause (119) of section 2 shall be treated as a supply of services. The provisions related to determination of time of supply of services are contained in Section 13 of the CGST Act, 2017 and the GGST Act, 2017 - the part of the supply made by the appellant wherein time of supply of service is on and after the appointed date (01.07.2017) i.e. after implementation of the CGST Act, 2017 and the GGST Act, 2017, the appellant is required to discharge Goods and Services Tax liability. - GUJ/GAAAR/APPEAL/2018/1 - - - Dated:- 16-5-2018 - AJAY JAIN AND DR. P.D. VAGHELA, MEMBER Present for the applicant : Shri Soham Mashruwala, CA Shri Rohit Bodiwala, Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Status Supply of pipes at location specified by RMC Completed in pre-GST era Excavation of trenches and Laying of pipes Completed in pre-GST era Testing and commissioning of network of pipeline Pending and will now be completed in Goods and Services Tax regime 5. In view of the foregoing facts, the appellant raised the following queries before the Advance Ruling Authority :- (A) Does the work executed and invoice to be raised for the pending event of testing and commissioning by the applicant after the implementation of the Goods and Services Tax Act amount to supply, and specifically supply of works contract ? (B) Is the applicant entitled to enjoy proportionate credit worth 10% duty of excise and VAT paid on materials bought vide invoices showing Excise and VAT separately, under the transition provisions so that there is no double taxation i.e. levy of tax on tax is avoided ? 6. The Advance Ruling Authority, vide Advance Ruling No. GUJ/GAAR/R/2017-18/3 dated 17.01.2018 = 2018 (6) TMI 559 - AUTHORITY FOR ADVANCE RULINGS, GUJAR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es made within 12 months immediately preceding 1st July, 2017. Thus, the appellant is entitled to claim of proportionate tax credit to the extent ownership of the asset created under the contract was not transferred before 1st July, 2017. 8.2 The appellant submitted that the pronouncement of the advance ruling authority is passed after the expiry of time-limit to file transition form, the appellant must be now allowed to file transition form in view of the result of the appeal. It is also submitted that the order of advance ruling authority was pronounced after expiry of 90 days is time-barred, therefore the order is passed beyond jurisdiction and that query of the appellant must by declared in favour of the appellant and that transition credit must be declared to be allowed. It is also submitted that a delayed order doesn t bind the appellant. 8.3 The appellant submitted that the transition provisions ingrained in the Goods and Services Tax Act have the sole reason that there is no case of double taxation and that the registered person nowhere loses any credit of the duties paid under the erstwhile enactments which are now repealed. It follows from the facts of the case that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such invoices or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day. 10.2 Thus, as per sub-section (6) of Section 140 ibid, a registered person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the existing law, is entitled to take credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed day, subject to fulfillment of conditions prescribed therein. In respect of a registered person, who was not liable to be registered under then existing law; or who was engaged in the manufacture of exempted goods or provision of exempted services, similar provisions are contained in sub-section (3) of Section 140 ibid. 10.3 The entire quantity of pipe was supplied by the appellant to RMC before the appointed date. The work of supply of pipes at location specified by RMC and work of excavation of trenches and laying of pipes had already been completed before the appointed date and only the work of testing and commissioning of network of pipeline was pending on the appointed date and will now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not immovable property. 10.7 In view thereof, the appellant is not entitled to avail input tax credit of Central Excise Duty and VAT paid on pipes, under sub-section (3) and (6) of Section 140 of the CGST Act, 2017 and the GGST Act, 2017. 11. As the appellant is not found entitled to avail input tax credit under Section 140 of the CGST Act, 2017 and the GGST Act, 2017, the question of filing of form for transitional credit (Form TRAN 1) by the appellant beyond stipulated time limit does not arise. Even otherwise, the appellant was required to file form for claiming of transitional credit (Form TRAN -1) on self assessment basis and it was not dependent upon the outcome of the proceedings pending before the advance ruling authority. 12.1 In respect of alternate plea raised by the appellant that in the event of denial of claim of transitional credit on the ground that there is no supply, there should not be liability to pay Goods and Services Tax on work carried out and payment received after implementation of the Goods and Services Tax Act, it is observed that the appellant is found ineligible to avail transitional credits, not on the ground that there is no supply, b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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