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TMI Blog2023 (12) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... SHRI HARILAL PRAJAPATI, MEMBER Represented by : Shri Bijay Bahadur Prasad, Advocate ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 UNDER SECTION 98 (4) OF THE UPGST ACT, 2017 1. M/s Spring Infrastructures, CP-138, Viraj Khand, Gomti Nagar Lucknow Uttar Pradesh, 226010 (here in after referred to as the applicant) is a registered assessee under GST having GSTN: 09ACJFS1880M1ZG. The applicant is primarily engaged in Land Developer business i.e Sale of Developed Land, having projects in different parts of Lucknow and duly registered under GST Law i.e. under the Jurisdiction of Assistant Commissioner, Sector-20, SGST Department, Lucknow. 2. The applicant has submitted an application for Advance Ruling dated 15.06.2023 enclosing dully filled Form ARA-01 (the application form for Advance Ruling) along with annexure and attachments. The applicant in his application has sought advance ruling on following question- 1. Whether the work done by the applicant in Transmission Line under the supervision of MVVNL comes under the definition of supply as per section 15 (2)(b) of UP GST Act, 2017 ? 2. Whether GST is to be paid to MVVNL on the full amount of work done fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the executive Engineer, Division-Raj Bhawan MVVNL, Lucknow on dt 19.10.2022 for allowing 15% supervision charges on estimated cost, copy of application is enclosed herewith. 10. That the MVVNL had issued revised demand letter on dt 19.10.2022 to the applicant asking for 18% of GST on the estimated cost which was solely done by the contractor appointed by the applicant under the supervision of MVVNL, copy of revised demand letter is enclosed herewith. 11. That it is here to clarify that the entire shifting/modification of Transmission line works are done by the contractor appointed by the applicant, who purchases the material for required for shifting/modification of the Transmission Line as per technical specification of MVVNL 12. That the contractor who has made purchases of the material for shifting of Transmission Line, has claimed ITC on the same, has done the work of shifting/modification which includes cost of dismantling the existing section, civil work for erection and cost of new work according to the specification of MVVNL, Therefore the aforesaid transaction is done between applicant and its contractor, who has made the required purchases and has complet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) Supply should be made within the taxable territory. 2. That the main parameter of supply is that there must be some consideration and transfer of ownership involved for a transaction to be treated as supply. In the instant case there is no consideration involved regarding shifting/modification of transmission line work. No amount has been by applicant to MVVNL for shifting/modification of transmission line work. The applicant makes payment for shifting/modification of transmission line work to its contractor and since the MVVNL only supervises the work of shifting/modification of transmission work, only supervision charges to be paid to MVVNL along with GST. As stated earlier, the ownership and control operation of the transmission lines remains with MVVNL and are not at all transferred in any form to applicant. The applicant is only concerned with the shifting/modification of these transmission lines from one place to another for obtaining safe clearances and that too is done under the expert supervision of MVVNL 3. That the MVVNL does not transferred any asses to the applicant. The transmission lines were the assets of MVVNL prior to and even after the shifting or mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actor. The pain and simple interpretation of this section is as under:- The above provision states that the expenses which ought to be incurred by the supplier but has been incurred by the recipient and provided to the supplier shall be added by the supplier in the invoice to be raised on his customer/recipient. It is merely seen in the construction project where the receiver of the service le contractes procures some crucial material as per his choice of quality and price and provides it to supplier Le contractor for using it in the construction work. The contractor will have to add value of the goods received from contractee in his in his running bill and charges GST on total value. 11. That in view of the above submissions, the MVVNL is not the contractor or supplier because shifting/modification of Transmission line work is not done by MVVNL and the transmission lines are the assets of MVVNL and not applicant. There is no contractor contractee relation between the applicant and MVVNL The only relation is that the assets belonging to MVVNL were occupying the space, which was intended to be used by the applicant. And therefore, the applicant is only shifting those ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference to the CGST Act would also mean a reference to the same provision under the UPGST Act. Further for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 9. We have gone through the Form GST ARA-01 filed by the applicant and observed that the applicant has ticked following issues on which advance ruling required- (1) Determination of the liability to pay tax on any goods or services or both; 10. We would like to examine whether the issue raised in the application is squarely covered under Section 97(2) of the CGST Act 2017 or not. For this we would like to examine this matter in light of definitions of Advance Ruling under section 95 of the CGST Act 2017 and the same is reproduced as under: Section 95. Definitions of Advance Ruling. In this Chapter, unless the context otherwise requires, (a) advance ruling means a decision provided by the Authority or the Appellate Authority to an applicant on matters or on questions specified in sub-section (2) of section 97 or sub-section (1) of section 100, in relation to the supply of goods or servi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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