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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 ..... he 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 for load sanction of 11 KV lines by applicant? 3. Without prejudice to the submissions made hereinabove and hereinafter, if the applicant pays GST on the entire value of work done to its contractors and also to MVVNL, then how will this payment of same amount of GST on the same transaction to two separate entities, not constitute double taxation? 3. As per declaration given by the applicant in Form ARA-01, the issue raised by the applicant is neither pending nor decided in any proceedings under any of the provisions of the Act, against the applicant. The applicant has submitted that- 1. That the M/s Spring Infrastructures) hereinafter referred as the Firm' is a Partnership Firm, having registered office at CP-138, Viraj Khand, Gomti Nagar, Lucknow -226010. 2. That the applicant is primarily engage 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 Jurisdict ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 completed the work according to the specification of MVVNL. 13. That the MVVNL is demanding 18% GST on the estimated cost because work done as per MVVNL. It is an asset transferred from applicant to MVVNL and in this regard it is submitted that prior to and even after the shifting/modification the Transmission line belongs to MVVNL. That it is hereby clarify that the ownership and operational control of the Transmission line remains with MVVNL and are not at all transferred in any form to applicant. The applicant is only concerned with the shifting of these Transmission line from one place to another for obtaining safe clearance and that too is done under the expert supervision of MVVNL. The entire shifting/modification of transmission line work is done by the contractor of the applicant. The MVVNL only supervises the Transmission line work and for this supervision charges to be paid to MVVNL along with GST. The only service for which MVVNL is liable to get payment along with GST is supervision charges which h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not transferred any asses to the applicant. The transmission lines were the assets of MVVNL prior to and even after the shifting or modification. That even during the process of shifting, the entire revenue generation from the operation of these transmission lines belongs to MVVNL and not the applicant. 4. That the MVVNL has not supplies any material to the applicant which can be used in the shifting/modification of the transmission lines. Each and every material used in the shifting/modification was purchased by the contractor of the applicant on which ITC has been claimed by the contractor. 5. That the transmission lines are the assets of MVVNL prior to and even after the shift. The applicant does not claim any assets. Therefore the transmission lines were and will remain the assets of MVVNL and not the applicant. 6. That if there is no transfer of assets, it means that there is no supply in the furtherance of business. The applicant is just facilitating in shifting of transmission line and there is no "buyer and seller" between the applicant and MVVNL in the case. The only relation is that MVVNL is supervising the shifting/modification of transmission lines as it is their ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich was intended to be used by the applicant. And therefore, the applicant is only shifting those assets after prior notice and seeking technical assistance from MVVNL to some other place. 12. That hypothetically, if the applicant complies with the demand notice issued by MVVNL, then the natural and obvious consequence will be that the applicant will end up paying the value of the work of shifting/modification of the transmission lines to its contractor along with GST and also the same amount of GST to MVVNL as well. This will be a clear cut case of double taxation as the same amount GST is being paid to the contractor as well as MVVNL in respect of the same transaction. This kind of transaction is not envisaged by any applicable law. 13. That as a general principal, indirect tax is always livied on the basic value of any goods sold/transferred or service provided. The MVVNL has not sold/transferred anything to the applicant and as such no consideration is being paid by the applicant to MVVNL. The applicant is already paying the value of the work of shifting of the transmission line to its contractor along with GST. The only service which MVVNL is providing to the applicant is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 100, in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant; (b) "Appellate Authority" means the Appellate Authority for Advance Ruling referred to in section 99; (c) "applicant" means any person registered or desirous of obtaining registration under this Act; The above clause (a) of section 95 clearly provides that the applicant of Advance Ruling should be related to a taxpayer who supplies the goods or services or both or who proposes to make supplies in future. As the wording says the "supply of goods or series or both" and not the "receipt of goods or services, or both", it is implied that the applicants seeking Advance Rulings should be the suppliers and not the recipients. The meaning of the applicant defined at Point No. (c) should be derived only in consonance with Point No. (a) of Section 95 of the CGST Act 2017. 11. Further, we find that the scope of supply as provided in section 7 of the CGST Act, the expression "supply" includes the following (a) all forms of supply of goods or services or both such a sale, transfer barter, exchange, licence, rental, lease or disposal made or agreed to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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