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TMI Blog2022 (3) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... y, local authority, Government Authority or Government Entity. Further, the activity of collection of Toll excludes the TMS works from the category of predominantly meant for use other than for commerce, industry, or any other business or profession . The word Business has a wide inclusive definition vide Section 2(17) CGST Act including, inter alia, any trade, commerce, or any other similar activity, whether or not it is for a pecuniary benefit, including activities in connection with/ incidental/ ancillary to it, whether or not there is regularity of such transactions. We find that the conditions of this sr. no 3(vi) of said NT is not satisfied in subject matter. The subject Service order is for supply of Toll Management System (TMS)to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt : Shri Naveen Gupta, CA Brief facts: M/s. Tecsidel India Private Limited (hereinafter referred to as Tecsidel for the sake of brevity) submits that it is primarily engaged in the development and integration of advanced information systems oriented to the management, efficiently and securely, of the mobility of vehicles, goods and information flows and engaged in trading of goods along with installation & commissioning of Toll management systems. 2. Tecsidel was awarded the project by M/s. Adani Road Transport Ltd. (ARTL) for project of Tolling, Operation, Maintenance & Transfer of National Highway stretch from Palanpur - Randhanpur - Samkhiyali, Section of NH-27 in the State of Gujarat. Tecsidel has received Service Order for performa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es rendered by the sub-contractor to the main contractor i.e. Tecsidel would be applicable @ 12% in view of Entry (vi) and (iv) of the CGST Rate Notification read with the GGST Rate Notification or @ 18%?. Personal Hearing 5. Personal hearing granted on 18-2-22 was attended by Shri Naveen Gupta, CA and he reiterated the submission. Revenue's submission: 6. Revenue has neither submitted its comments nor appeared for hearing. Findings 7. At the outset we would like to make it clear that the provisions of CGST Act and GGST Act are in pari materia and have the same provisions in like matter and differ from each other only on a few specific provisions. Therefore, unless a mention is particularly made to such dissimilar provisions, a refere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Central Government, State Government, Union territory or local authority, as the case may be." 9.1.A We hold that for being eligible to be covered vide serial number 3 (vi) of said NT, the following criteria is to be satisfied: i. Supply shall be composite supply of works contract. ii. Supply provided to the Central Government, the State Government, the Union Territory, a local authority, a Government Authority or a Government Entity. iii. The civil structure or original works must be predominantly meant for use other than for commerce, industry, or any other business or profession. 9.2.B We find that the TMS works is supplied by Tecsidel to M/s Adani and not to any Central/ State Government, Union Territory, local authority ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not provide real time information about traffic conditions, pollution, weather conditions and status of expressway to road users ii. TMS is not a road. iii. TMS is not a bridge. iv. TMS is not a tunnel. v. TMS is not a terminal for road transportation. 10.3 We find that the conditions of this sr no 3(iv) of said NT is not satisfied in subject matter. 11.Now, we take up the applicant third question for discussion with reference to service provided by sub contractor to main contractor liable to@ 12% in respect of entry No. (iv) and (vi) of Not. No. 11/2017-CT (Rate). 11.1 During Personal Hearing, Shri Naveen Gupta, CA was asked to clarify question no.3 and as to who is referred to as sub-contractor and main contractor in this m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tecsidel and Adani is for TMS supply and not Road supply. If the contract was for road supply along with TMS supply that would have been an altogether different scenario. However, said contract between Tecsidel and Adani is for TMS supply only. In paragraph 9.2.B, we have detailed our findings that TMS in subject case does not fall under the category of 'predominantly meant for use other than for commerce, industry, or any other business or profession'. Thus supply is not covered at 3(vi) of subject Notification. Further, 3(iii) of said NT pertains to work contract service of construction of historical monuments, canal dam etc. which is different from subject supply. 12. We note that Tecsidel placed reliance on Uttar Pradesh Advance Ruli ..... X X X X Extracts X X X X X X X X Extracts X X X X
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