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TMI Blog2019 (7) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... mentioned in the GST Act, 2017 - the element of consideration is not involved in the activity and therefore the said activity is not a supply under the Section 7 of GST Act, 2017. Levy of GST - exemption vide Entry 4 of Notification no. 12/2017- Central Tax (rate) dated 28.06.2017 - HELD THAT:- While going through the above provision of Schedule II, it provides a transfer of business assets where goods form part of the assets. As the constructed power transmission lines are not goods as explained above, the said schedule is not applicable - in relation to definition of goods, supply and consideration under GST act, 2017 we find that assets constructed by the applicant do not fall under category of goods, thus no supply is involved. Therefore, the applicability of GST does not arise. - AAR No. RAJ/AAR/2019-20/09 - - - Dated:- 28-5-2019 - J.P. MEENA AND HEMANT JAIN MEMBER Present for the applicant: Ms. Ritika Rajvanshi, CA (Authorised Representative) Note: Under Section 100 of the CGST/RGST Act, 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of CGST/RGST Act, 2017, within a period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is currently undertaking modification/ diversification of various Highways in the region of Kishangarh to Udaipur, Jodhpur Ring Road, Dausa bye pass and other similar locations. The existing power transmission lines of RVPNL are crossing the National Highways Roads / passing along these roads in nearby proximity of the existing roads and are presently having safe electrical clearance from the ground to the lowest/ nearest conductor wire of these power lines. d. For the purpose of widening of these roads from two lanes to four lanes, four lanes to six lanes, partly construction of new roads (to make ring roads around Jodhpur City),a part of construction of flyovers vehicle under pass etc., these power lines are required to be modified either by raising or by shifting to keep safe electrical clearances, as per Indian Electricity Rule 77. For the purpose of Highway modification, the deposit work for transmission lines existing across and along the roads are required to be raised/ shifted, to obtain safe clearances and safety purpose. e. RVPNL has the policy wherein the work relating to raising or shifting of EHV Power transmission lines during the diversification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red on such transfer shall be borne by intending agency/ consumer. k. The demand issued by RVPN (as attached in Annexure-2 for one of the locations for your reference) through the circle Superintend Engineers of the area concerned, includes the major component of GST on asset transfer , which is the main question for seeking this advance ruling. l. It is pertinent to note in Letter dated 18.09.2018 that the question of valuation arises when a given transaction is a supply and where it has a transaction value. The given transaction neither is a supply, nor it has transaction value. Thus, Section 15 of GST Act is not applicable at the initial stage. m. The method illustrated in the circular dated 07.08.18 for working out the estimate, at table 1.1 and so on, has the demand of GST @ 18% on the three components namely (i) cost of dismantling the section of power line (ii) cost of new work (iii) civil work involved (foundation, execution of skimming of wires) As total at claim (iv). n. RVPNL in its circular dated 07.08.18 describes this (iv) as an Asset Transfer from NHAI to RVPNL for the sake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .05.2019 at Room no. 2.29 NCRB, Statue Circle, Jaipur. Ms Ritika Rajvanshi, CA (Authorised Representative) of applicant appeared for PH. During the PH, she reiterated the submissions already made in the application and also submitted some additional documents. She further requested that the case may be decided at the earliest. 4. COMMENTS OF THE JURISDICTIONAL OFFICER The jurisdiction officer (Assistant Commissioner, SGST and Commercial Taxes, Circle-I, Jaipur) has submitted vide letter dated 25.04.2019 which can be summarized as under: From the submission made by the applicant it appears that view taken by NHAI that in the course of widening of its highways and in the course of it shifting or raising power transmission lines owned by RVPNL no new asset is created with respect to such transmission lines and nothing is to be transferred by NHAI to RVPNL hence there is no asset transfer and the question of applicability of GST on asset transfer does not seems to arise, is more appropriate and it appears that there is no asset transfer. 5. FINDINGS. ANALYSIS CONCLUSION: a. The Applicant is undertaking shifting of transmission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transmission lines in relation to definition of goods as mentioned in the GST Act, 2017:- (52) goods means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply; In view of above definition we find that the assets created by the applicant being an immovable property does not fall under the definition of goods as mentioned in the GST Act, 2017. f. The definition of consideration in Section 2 (31) of the GST Act, 2017 is reproduced below:- Consideration means any payment made or to be made, whether in money or otherwise in respect of, in response to or for the inducement of the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government. In view of above facts, we observe that the element of consideration is not involved in the activity and therefore the said activity is not a supply under the Section 7 of GST Act, 2017. g ..... X X X X Extracts X X X X X X X X Extracts X X X X
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