9911796707
TMI Blog2020 (6) TMI 490X X X X Extracts X X X X X X X X Extracts X X X X ..... wnership of the said mineral and land before the agreement, in duration of agreement and post agreement, therefore the activity is just a service to M/s. AMP. The applicant is providing supporting service related to mining. The said service is classifiable under HSN 998622. The rate of GST on the said service is 18% as provided under the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (as amended). The applicant is misconstruing the facts because nowhere in the agreement, M/s. AMP asks the applicant to lease manpower and vehicles. In fact, the supply of manpower and vehicles is for the own benefit of the applicant, these supplies are not made to M/s. AMP but to himself. Therefore, both these supplies cannot be categorized as independent supplies made to M/s. AMP. Scope of Advance Ruling Authority - Difference between operator and manpower as per GST Provisions - Special Purpose Vehicles - whether classified as machinery or not - HELD THAT:- The issue raised by the applicant, are beyond the scope of this authority as it is not covered under section 97(2) of the CGST Act, 2017. - RAJ/AAR/2020-21/03 - - - Dated:- 14-5-2020 - J.P. MEENA AND HEMANT JAIN MEMBER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Certified Mines Engineer, Site Accountant and if required, a qualified Cost Works Accountant also. The consideration of the above said works is fixed at ₹ 400 per MT on a target based production basis which shall be subject to raising of undistributed bills on monthly basis and that shall be the full final consideration including all the above said described words. There shall also be a penalty for short production. The above said consideration will be subject to TDS deduction u/ s 194C of Income Tax Act, 1961; 2. that as per the SAC 9973, we have not entered into any rent or lease agreement. We have not supplied only machines with operator rather than undertaken the whole project of mines development, drilling, excavating of stone supply of skilled unskilled manpower including Qualified Site Engineers, Cost Work Accountants etc. In fact, the machineries are actually Special Purpose Vehicles including JCB trucks; 3. that as described above, we have supplied complete manpower for development and working of mines not only operator of machines. In fact, a qualified RTA Licensed commercial motor vehicle driver is required to run those Special Purpose Vehicl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lause 119 of Section 2 of CGST Act, 2017 provided to a government entity 2.5% 10. that we had sought a question in our ARA-01 on difference between operator and manpower as per GST provisions, as we have to supply special purpose vehicles including Poclain, TRUCKS JCBs which as per the motor vehicle act requires a commercial licensed driver to drive we have to supply skilled and unskilled manpower including qualified site engineers, Cost work accountants etc. but our money consideration for the same is through raising of undistributed bills on output per ton basis; 11. that we have attached a list of Special purpose vehicles along with our ARA-01 which we have to use for the execution of our work and are tabulated as below also. We seek to ask whether the said are categorised as machinery as per GST provisions: Name of Special Purpose Vehicles Description IR Crawling vehicle generally used for drilling and loading at mining site. POCLAIN Special Purpose moving vehicle for excavating at the mining site. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... While going through the submissions made by the applicant in ARA-01 and an agreement letter dated 23.12.2019 (hereinafter the agreement ) between the applicant and M/S AMP Minerals Pvt. Ltd. (hereinafter M/s. AMP for sake of brevity), we find that the applicant has been tasked to extract 2 lakh MT of Serpentine/Green Marble (hereinafter the mineral) per year at M/s. AMP s Dungarpur mining site located at Simalwara, Rajasthan. In the agreement, the applicant has also been asked to deploy some earthmoving vehicles and manpower at the mining site. The applicant has to produce at least 8000MT Serpentine/ Green Marble per day, otherwise he shall be charged a penalty for non-achievement of target. The applicant will get consideration at the rate of ₹ 400 per ton of the mineral extract. 2. We find that the applicant has not taken lease of the mining land, in fact, whatever material is extracted, be it mineral or overburden material, is owned by M/s. AMP. It seems that M/s. AMP has engaged applicant mainly to do mining work on his behalf and extract the minerals against which applicant will receive consideration. The applicant has to develop infrastructure viz. site office, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 24 Heading 9986 [(iii) Support services to mining, electricity, gas and water distribution other than (ii) 9 - 5. Further, the Explanatory Notes on Classification of Services which are based on United Nations Central Product Classification (UNCPC) and equally mandated by CBIC in determination of Classification of Services, describes HSN 998622 as following- 998622 Support services to other mining n.e.c. This service code includes draining and pumping of mines; overburden removal and other development and preparation services of mineral properties and sites, including tunneling, except for oil and gas extraction; test drilling services in connection with mining operations, except for oil and gas extraction; operation of other mining units on a fee or contract basis This service code does not include: mineral exploration and evaluation services, cf. 998343 geophysical services, cf. 998341 6. We further find that it is mentioned in the agreement that the applicant is supplying manpower and some special purpose vehicles like earthmovers to fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperty and minerals is with M/s AMP. 9. Further, the contention raised by the applicant that his issue is similar to matter discussed in advance ruling order passed by Jharkhand Authority for Advance Ruling (JAAR) vide Order No. JHR/AAR/2018-19/01 dated 02.08.2018 = 2019 (1) TMI 1369 - AUTHORITY FOR ADVANCE RULING, JHARKHAND is also not tenable on the ground that the order passed by JAAR is related to a partnership firm which is engaged in providing works contract services to a government entity whereas in the instant case, both facts are non-existing. 10. Section 97 (2) of CGST Act, 2017 delineates clauses under which an applicant can sought advance ruling, which are as following- (2) The question on which the advance ruling is sought under this Act, shall be in respect of, (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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