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TMI Blog2019 (4) TMI 1945X X X X Extracts X X X X X X X X Extracts X X X X ..... ioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of, with respect to certain specified works services or not - whether APEPDCL would fit into the definition of business as per Notification No. 17/2018, dated 26-7-2018? - challenge to AAR decision - HELD THAT:- The term business as defined above will not be applicable to the said transaction, as the transaction is not undertaken by the State Government in which it is engaged as public authority, but it is the activity undertaken by the APEPDCL, which is a company incorporated under the Companies Act, 1956 and having its registered office at Sai Shakti, Opp. Saraswathi Park, Daba Gardens, Vishakhapatnam-530020, for carrying on the business of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck of legal or statutory support to the argument. The decision of AAR upheld. - Application No. AAAR/05(GST)/2019 in Order No. AAAR/AP/03(GST)/2019 - - - Dated:- 24-4-2019 - Shri B. Hareram, Member (Central Tax) and J. Syamala Rao, Member (State Tax) Shri B. Venkateswarlu, for the Assessee. ORDER M/s. Vijai Electricals Limited, GSTIN No. 37AAACV7259B1ZB, D. No. 4-70-1313, Lawsons Bay Colony, Visakhapatnam, AP 530017, (hereinafter referred to as appellant). The appellant is engaged in electrification work to the APEPDCL for procurement of plan, design, supply, install and commission certain facilities viz., providing underground cable work in Visakhapatnam city, package-1 and package-3 (replacement of existing 33/11 KV ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with Notification No. 31/2017-Central Tax (Rate), dated 13-10-2017, as the works undertaken by APEPDCL are for business purpose. Moreover, the transaction of the appellant comes under the works contract and falls under Entry No. (ii) of S. No. 3 of the table of Notification No. 11/2017-Central Tax (Rate), dated 28th June 2017 as amended from time to time and corresponding notifications under APGST Act, 2017, and the applicable rate of tax is 18% (9% under Central Tax and 9% State tax.). 5. Aggrieved by the Ruling passed by the AAR, A.P. vide Ruling AAR No. 29/AP/GST/2018, dated 19-12-2018, the appellant preferred the present appeal before the Appellate Authority for Advance Ruling, in ARA-02, with the following contention. 6. Whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tification vide GOMs No. 259, dated 29-6-2017 Revenue (CT.II) Dept., as amended from time to time, the rate of GST applicable to the works executed for the Central Government, State Government, Union Territory, a Local Authority or a Government entity by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of a civil structure or any other work meant predominantly for use other than for commerce, industry or any other business or profession, is 12%. (3) The Spl. Chief Secretary, Land DM issued orders stating that their activity is public utility works, not commercial and the same may be informed to the concerned. (4) In support of the above clarif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s created out of this activity belongs to A.P. Govt., alone and these works are public utility services, not in commercial nature, thereby it attracts concessional rate of GST i.e. 12%. 8. The appellant pleads that whether the tax rate of 12% (CGST 6% + SGST 6%) is applicable to their contract, in pursuance of Notification No. 20/2017-Central Tax (Rate), dated 22nd August, 2017 and Notification No. 24/2017-Central Tax (Rate), dated 21-9-2017. Personal hearing 9. The personal hearing was called on 12th April, 2019, for which the authorized representative Sri. Venkateswarlu Bharathula attended and reiterated the written submission. The appellant made the following plea at the time of personal hearing. (1) The works contrac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12. When looked into the above explanation, the term business as defined above will not be applicable to the said transaction, as the transaction is not undertaken by the State Government in which it is engaged as public authority, but it is the activity undertaken by the APEPDCL, which is a company incorporated under the Companies Act, 1956 and having its registered office at Sai Shakti, Opp. Saraswathi Park, Daba Gardens, Vishakhapatnam-530020, for carrying on the business of Distribution and Retail Supply of electrical energy within the Area of Supply (as defined in this License) and with the powers and upon the terms and conditions specified therein. Moreover APEPDCL is a Government entity and it does not fall under the explanation p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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