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TMI Blog2021 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... e price. The Hon ble High Court of Kerala in the case of ABBOTT HEALTHCARE PRIVATE LIMITED VERSUS THE COMMISSIONER OF STATE TAX KERALA, THE COMMISSIONER, CGST, KERALA, UNION OF INDIA, STATE OF KERALA, THE KERALA AUTHORITY FOR ADVANCE RULING, THE KERALA APPELLATE AUTHORITY FOR ADVANCE RULING [ 2020 (1) TMI 338 - KERALA HIGH COURT] held that a composite supply must take into account supplies as affected at a given point in time on as is where is basis. The supply made by the applicant against the letter of acceptance (LOA) of the South Central Railway is a composite supply and the rate of tax applicable is the rate at which the principal supply has to be taxed i.e., Electrical signalling equipment with HSN code 8530 - This commodit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 5,000/- for SGST and ₹ 5,000/- for CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided by nor are pending before any authority under any provisions of the GST Act. 4. Brief facts of the case: The applicant Medha Servo Drives are manufacturers of electronics equipments for locomotives and coaches for Indian Railways and Metro Railways. They have submitted that they have entered into contract with south central railway for design, supply, installing, testing commissioning of train collision avoidance system in locomotives. That as per the agreement they have to supply multiple items and provide services including annual maintenance se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Railways. As seen from the letter of acceptance (LOA) issued by south central railway dated: 13.11.2019 the contract is for design, supply, installation, testing and commissioning of onboard TCAS equipment in locomotives and track side. The LOA also contains schedule of quantities mentioning various items to be utilized quantity and value wise in it. There is also a payment schedule for the contract. There is a specific clause 6 regarding GST which mentions that the contractee i.e., south central railway shall reimburse the GST if a higher rate is determined even after completion of the contract. The Ministry of Railways, Government of India have published a handbook on Train Collision Avoidance System (TCAS) in Apr 2021 wherein the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CGST Act in Section 2(30) as follows: Composite supply means a supply made by a taxable person to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principal supply. Illustration : Where goods are packed and transported with insurance, the supply of goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. As seen from the above definitions a composite supply is essentially a naturally bundled supply where two or more different supplies invariably exist along with each other. As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t illustrations in a statute are part of the statute and help to elucidate the principle of the Section ( Dr. Mahesh Chandra Sharma Vs Smt. Raj Kumari Sharma AIR 1996 SC 869 ). Therefore a composite supply should be similar to a supply mentioned in the illustration to the definition in Section 2(30), where two or more taxable goods or services are supplied along with each other to constitute a composite supply. Therefore in view of the above discussions the supply made by the applicant against the letter of acceptance (LOA) of the South Central Railway is a composite supply and the rate of tax applicable is the rate at which the principal supply has to be taxed i.e., Electrical signalling equipment with HSN code 8530 This commod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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