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TMI Blog2023 (2) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... kes, and other controls for streams and shorelines; and recovering valuable mineral deposits or marine life having commercial value. In all but a few situations the excavation is undertaken by a specialist floating plant, known as a dredger . On due consideration of the cost of the materials involved in the instant supply, as certified by the Executive Engineer, Krishna Central Division, Vijayawada, we are of the opinion that the work being undertaken by the applicant is a composite supply of works contract which predominantly involves earth work i.e., constituting more than 75 per cent. of the value of the works contract as specified under serial number 3(vii) of Notification No. 39/2017- Integrated Tax (Rate) dated 13.10.2017. Whether the supply being provided by the applicant to the Water Resource Department, Government of Andhra Pradesh would be considered as supply to the State Government so as to cover under serial number 3 (vii) of the Notification No. 39/2017- Integrated Tax (Rate) dated 13.10.2017? - HELD THAT:- A department of Central/ State Government shall be regarded as Central/State Government and therefore, supply being provided by the applicant to the Water ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d all other items required for operation and maintenance of dredger pipeline reclamation of banks and formation and maintenance of slurry bunds and including all the leads and lifts specified by the department. 1.4 The applicant has made this application under sub section (1) of section 97 of the GST Act and the rules made there under raising following questions vide serial number 14 of the application in FORM GST ARA-01: (a) Whether Government of Andhra Pradesh- Water Resources Department comes under the purview of State Government? (b) Whether amendment made vide Notification No. 39/2017 dated 13-10-2017 Integrated Tax (Rate) in the table against Serial No. 3 for the item (vii) will be applicable in this case? 1.5 The aforesaid questions on which the advance ruling is sought for is found to be covered under clause (b) of sub-section (2) of section 97 of the GST Act. 1.6 The applicant states that the questions raised in the application have neither been decided by nor is pending before any authority under any provision of the GST Act. 1.7 The officer concerned from the revenue has raised no objection to the admission of the application. 1.8 The application ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oviding water security to all stakeholders (drinking, irrigation and industry) (b) Providing sufficient water to all available cultivable land of Andra Pradesh. (c) Improve economic status and happiness index of the farmer by improving water efficient and crop yields, by providing the right amount of water to the right farm at the right time. (d) Interlinking of rivers to ensure adequate and reliable water is available to all regions across the state. (e) Completion of all irrigation projects on a priority basis in a time bound manner. (f) Cascade development to optimize run-off capture within the basins. (g) Long term sustainable double-digit growth. (h) Operations and maintenance of reservoirs and canal system. (i) Adopting leading edge technologies and world class practices to achieve the above-mentioned goals. (j) Presentation of data analysis on water availability, utilization of Inter-state river basins to the respective tribunals. 2.3 According to the applicant, he is providing dredging service which predominantly involves earth work. As per the work order, the total value of the dredging/excavation, loading, unloading, tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government, Union Territory, a government authority or a government entity. 3.2 It appears that the services provided by the applicant includes earthwork but whether the value of earthwork involved exceeds 75% of the contract value or not cannot be ascertained in absence of work order. The value and scope of material supply, charges related to hiring of machineries etc and value of earth work in relation to total work can be ascertained only from the detailed work order with value wise break up. 4. Observations Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made by the authorised representative of the applicant during the course of personal hearing. We have also considered the submission made by the officer concerned from the revenue. 4.2 Entry No. 3 (vii) of the Notification No. 39/2017- Integrated Tax (Rate) dated 13.10.2017 specifies that Composite supply of works contract as defined in clause (119) of section 2 of the Central Goods and Services Tax Act, 2017, involving predominantly earth work (that is, constituting more than 75 per cent. of the value of the works contract) provided to the Central Governmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said para is reproduced hereinunder: The term Earth Work has not been defined under any GST provisions. The Webster Dictionary defines Earth Work as an embankment or construction made of earth specially one used as a field fortification. The Collins Dictionary defines Earth Work as excavation of earth as in engineering construction; a fortification made of earth. The Wikipedia defines Earth Work as Earth work are engineering works through the processing of parts of earth surface involving quantities of soil or unformed rocks. After going through different definitions of earth work, we find that Bulk earthworks include the removal, moving or adding of large quantities of soil or rock from a particular area to another. They are done in order to make an area of suitable height and level for a specific purpose Further, the Maharashtra Appellate Authority for Advance Ruling, in the case of Soma Mohite Joint Venture [2020] 122 taxmann.com.276 has held that It is therefore established beyond doubt that expression Earthwork implies Excavation . 4.6 It is evident that the applicant undertakes the work of dredging in the foreshore of Prakasam Barrage. Dredging is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices provided by one department of the Government to another Department of the Government be taxable? Answer : Services provided by one department of the Central Government/State Government to another department of the Central Government/ State Government are exempt under notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 [S No 8 of the Table]. However, this exemption is not applicable to: (a) services provided by the Department of Posts by way of speed post, express parcel post, life insurance, and agency services provided to a person other than the Central Government, the State Government and Union Territory; (b) services in relation to a vessel or an aircraft inside or outside the precincts of a port or an airport; (c) services of transport of goods and/or passengers. It thus appears that a department of Central/ State Government shall be regarded as Central/State Government and therefore, supply being provided by the applicant to the Water Resource Department of Government of Andhra Pradesh qualifies as a supply to the State Government. In view of the above discussions, we rule as under: RULING The instant supply bein ..... X X X X Extracts X X X X X X X X Extracts X X X X
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