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TMI Blog2022 (3) TMI 1203X X X X Extracts X X X X X X X X Extracts X X X X ..... her the work to be awarded to the applicant by the principal contractor will be either wholly or partially or of goods service both or only goods or only service - in the absence of aforesaid information/ documents, we are not enough capable to examine whether the work to be allotted to the applicant will have all components of composite supply, works contract, immovable property etc. and will satisfy the elements of the Clause 3A of the Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018. In the case at hand, the applicant had not furnished any documentary evidence to substantiate their proposed scope of work, mode of supply (i.e. whether supply of goods or service or both) in the form of any work Order, quantum of goods or service or both to be supplied or any documentary evidence to prove the proposed supply of the applicant, i.e., any correspondences with the proposed principal suppliers with whom they intend to enter into transactions or contract/agreements/Purchase orders for supply. In this situation, without the specifics of the proposed supply, substantiated with the material facts, this authority is constrained to not to rule on the applicability of 3A of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Tax (Rate) dated 25.01.2018. That the Clause 3A of the Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 is reproduced herein below for the ready reference: 1 2 3 4 5 3A Chapter 99 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 percent of the value of the said composite supply provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil That in this regard the Applicant herein submits that: 1. That a Contractor and Sub-Contractor are not defined under the CGST Act, 2017 but as per the general definition: I. Contractor means a person or firm that undertakes a contract from the Originating Employer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d work to a sub-contractor in accordance with the terms and conditions of the contract, whether the same rate of duty i.e. NIL shall also be applicable to the said sub-contractor as he is performing the same functions/providing composite supply of goods and services as that of the contractor and providing such composite supply of goods and services for the Central Government, State Government or Union Territory or Local Authority or a Government Authority or a Government Entity only. C. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 01.10 .2021. Shri Anurag Kalavatiya, Advocate (Authorised Representative) of applicant appeared for PH. During the PH, he reiterated the submissions already made in the written application. He requested for early disposal of the application. D. FINDINGS, ANALYSIS CONCLUSION: 1. We have gone through the facts of the case and submission made by the applicant at the time of preliminary hearing. 2. The Applicant wants to apply for a contract in the capacity of a Sub-Contractor with the Principal Contractor who has been allotted tender by the Office of the Additional Chief Engineer, Public Health and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mely: (a) works contract as defined in clause (119) of section 2; and (b) supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration. 4.4 As per Section 2(119) of CGST Act, 2017-works contract means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract. 4.5 Under the General Clauses Act, 1897 the term immovable property has been defined under Section 3(26) as immovable property shall include land, benefits to arise out of land, and things attached to the earth, or permanently fastened to anything attached to the earth. 5. Let us analysis the present case in the light of above legal provisions keeping in mind the facts and documents/informa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the applicant in the said project (i.e. 'Operation and Maintenance of Integrated Ramganjmandi Pachpahar Water Supply Project- Transmission Part), we are not in the position to ascertain whether the work to be awarded to the applicant by the principal contractor will be either wholly or partially or of goods service both or only goods or only service. 11. Thus, in the absence of aforesaid information/ documents, we are not enough capable to examine whether the work to be allotted to the applicant will have all components of composite supply, works contract, immovable property etc. and will satisfy the elements of the Clause 3A of the Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018. Further in the absence of proper contract/agreement/work order, how we can say that the value of supply of goods does not exceeds 25% of the total value of so-called composite supply? 12. Further apart from the write up, the applicant neither produced any supporting documents in relation to the availability of exemption to the principal contractor in respect of Clause 3A of the Notification No. 02/2018-Central Tax (Rate) dated 25.01.2018 nor submitted any documentary evidenc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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