9911796707
TMI Blog2021 (1) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... oil or unformed rocks. After going through different definitions of earth work, we find bulk earthworks include removal, moving or adding of large quantities of soil or rock from a particular area to another. They are done in order to make an area of suitable height and level for a specific purpose. It is evident that the said work order is in the nature of composite supply of work contract involving predominantly earthwork. It has also been detailed in PART III of the allotted tender (as annexed with the application by the applicant) that the nature of work is production of stones, supply of skilled unskilled manpower, supply of special purpose vehicles other mining equipments also involving construction services and supply of goods wherein transfer of property in goods is involved. The major part of the contract involves earth work i.e. more than 75% of the work involves earth work. Comments of the Officer under Section 98(1) of the CGST, HGST Act 2017 As per the nature of work assessed by the proper officer pertaining to work contract as awarded by Haryana State Industrial Infrastructure Development Corporation (HSIIDC) to the applicant, it involves predominan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also indulged in the mining of various stones minerals and alike in the state of Haryana since 2011. The applicant also transfers the property in goods so produced during the process of work contract to various government entities engaged in the business of mining private firms in trading of said goods. 3. The applicant has applied for seeking advance ruling under section 97(1) of the CGST Act, 2017 for a work Contract allotted by Haryana State Industrial Infrastructure Development Corporation Ltd (hereinafter referred to as HSIIDC ) as per the terms in their mutual contract and LOI as annexed with the application. 4. That further it has been detailed by the applicant in the contract and appurtenant to other supporting documents that the skilled and unskilled labour, special purpose vehicles equipments, construction services, technical Knowhow, loading and unloading of goods, transportation services, excavation of stones, trading supply of various types of stones, development of mines as per the statutory provisions of MMR-1961 DGMS and transferring of property in goods has been initiated at the Khanak mining site of Bhiwani district, Haryana. 5. That the work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sumables, operation and maintenance personnel for mine development work viz drilling, excavation, removal, transportation and dumping of waste material at the place ear-marked for the purpose as per Mining Plan or Mines Manager/Mining Engineer guidelines. Construction, formation and maintenance of approach/road/ramp/benches, etc as per MMR 1961 and relevant applicable Circulars issued by DGMS. Construction of staff quarters and building for storage of stores consumables at the mining site 10. That the applicant has provided a composition of various inseparable services and goods which are naturally bundled whose consideration has been received through undistributed bills. The following are the major heads of goods and services supplied, thus making it a composite supply of work contract. ■ SAC 99731: Supply of mining machinery along with operators/drivers. ■ SAC 9985: Supply of manpower including skilled unskilled manpower at the site. ■ SAC 995426: Construction of mining site including development of approach, road, benches, plinths and other mining benches. ■ SAC 995421: Electrification of approach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they have supplied composite supply of work contract involving predominantly earthwork to HSIIDC for which the work has been entrusted to the corporation by Government of Haryana. 16. That the TDS under Income Tax was deducted under Section 194C (Contractual Payments) of the Income Tax Act, 1961 as the said condition of work order by HSIIDC. The section of the said act dealing with rent/Lease of property is 1941. The applicants have also annexed a decided case law of M/s City Corporation Ltd vs Department of Income Tax, dt.12/08/2015; ITA No.593/594/PN/2014 whereby tribunal has placed reliance on the decisions of Hon'ble Gujarat High Court in the case of Shree Mahalaxmi Transport Co. reported as 339 ITR 484 (Guj.) = 2011 (1) TMI 1104 - GUJARAT HIGH COURT and Swayam Shipping Services Pvt Ltd reported as 339 ITR 647 (Guj.) = 2011 (1) TMI 797 - GUJARAT HIGH COURT Whereby similar tender allotted to has been regarded as contract and not leasing by the Hon'ble High Court. It was concluded that payments made for hiring machinery like JCB, Poclain etc with driver are in nature of works contract and not 'rent' and will be liable to deduction of tax at source ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h different definitions of earth work, we find bulk earthworks include removal, moving or adding of large quantities of soil or rock from a particular area to another. They are done in order to make an area of suitable height and level for a specific purpose. 21. It is evident that the said work order is in the nature of composite supply of work contract involving predominantly earthwork. It has also been detailed in PART III of the allotted tender (as annexed with the application by the applicant) that the nature of work is production of stones, supply of skilled unskilled manpower, supply of special purpose vehicles other mining equipments also involving construction services and supply of goods wherein transfer of property in goods is involved. The major part of the contract involves earth work i.e. more than 75% of the work involves earth work. Comments of the Officer under Section 98(1) of the CGST, HGST Act 2017 22. The Deputy Excise Taxation Commissioner (ST), Bhiwani, Haryana has submitted the comments of the proper officer under Section 98 (1) of the HGST Act, 2017 vide letter No. 2535 dated 24.02.2020. The comments have been described below: 23. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
