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TMI Blog2021 (1) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... ance 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 contract allotted as discussed above is in the nature of earthwork supplied to a government entity and the same was entrusted by state government to HSIIDC and the applicant is a contractor providing composite supply of work contract as defined in clause 119 of Sec-2 of the CGST Act,2017, involving pre dominantly earth work (i.e. constituting more than 75% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed 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 road, boundary wall of the mining site. ■ SAC 99651: Transportation of goods. ■ HSN 2517: Supply of goods including rodi, dust, crusher stone, blue stone, red stone to HSIIDC. 11. As per the definition described in the said Notification No. 31/2017-Central Tax (Rate), "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliamen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y 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 u/s 194C. 17. The applicants had also quoted advance ruling order no. - JHR/AAR/2018-19/01 = 2019 (1) TMI 1369 - AUTHORITY FOR ADVANCE RULING, JHARKHAND issued by JHARKHAND AUTHORITY OF ADVANCE RULING GOODS AND SERVICES TAX under clauses of section 97(2) of CGST/SGST/UGST Act, 2017 regarding applicability of notification No. 39/2017 IGST dated 13.10.2017 {as similar to 31/2017 CGST) regarding definition of government entity & earthwork excavation & categorised as Work Contract as defined i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 dealer is engaged in undertaking work contract for excavation of stones, loading and unloading of goods, transportation services, development of mines as per the statutory provisions of MMR-1961 & DGMS. 24. 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 predominantly earthwork & the same is in the nature of composite supply of work contract as defined in clause 119 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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