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TMI Blog2024 (4) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... in the nature of works contract services for construction of pumping stations and reservoirs. The said services are not covered under any of the entries of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. It is concluded that the question posed by the applicant is related to supplies undertaken by them, to M/s BWSSB, Bengaluru, prior to the date of filing of the application for advance ruling and thus no ruling can be given on the question. Thus the instant application is not maintainable and liable for rejection under the provisions of the GST Act 2017. Further, as for the question on future supplies is concerned, based on the available information the supply is of works contract services and is not covered under any of the entry in the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017, as amended. - DR. M.P. RAVI PRASAD AND SRI. KIRAN REDDY T, MEMBER Represented by : Sri. K J Kamath, Advocate Authorised Representative ORDER UNDER SECTION 98(4) OF THE CGST ACT, 2017 AND UNDER SECTION 98(4) OF THE KGST ACT, 2017 M/s. KBL SPML Joint Venture (herein after referred to as 'Applicant'), C/o Workafella, 150,1, Infantry Road, Opp. Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent . 6. Admissibility of the application : The advance ruling is sought by the applicant on the question, at para 2 supra, in respect of the issue of applicability of a notification issued under the provisions of the CGST Act 2017 to the supply concluded prior to filing of the application and thus the maintainability of the said application will be discussed. Further the applicant consequent to orders of the Hon'ble High Court of Karnataka amended the application to modify the question in respect of the future supplies also. The issue of applicability of a notification to future supplies is covered under section 97(2)(b) and hence the application is admissible under Section 97(2)(b) only for the limited purpose of future supplies. PERSONAL HEARING PROCEEDINGS HELD ON 13.07.2023 07.09.2023 7. The applicant, as per the Hon'ble High Court's order supra, was given an opportunity of hearing on 13.07.2023. and Sri. K J Kamat, Advocate appeared for the said hearing and argued with regard to admissibility of the application that the phrase In this Chapter, unless the context otherwise requires prefixed to the definitions given under Section 95 of the CGST Act 2017 in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruling on the question related to the transaction undertaken by the applicant , ironically admitting that the term transaction has not been defined under the CGST Act 2017. The word transaction was used in the earlier order as the question demanded the same. Thus the question on which advance ruling is sought is considered as supply undertaken by the applicant. 11.2 The applicant quoting the GST Flyer stated that this authority has erred in its earlier order/ruling by concluding that advance ruling can be sought in respect of ongoing transactions . In fact this authority had reproduced the definition of advance ruling given in flyer and referred a transaction already being undertaken as an ongoing transaction, which is clearly evident from para 11 of the earlier order/ruling. The phrase being undertaken is quoted from Section 95(a) which defines advance ruling and its scope. Thus this argument of the applicant is factually not correct. 11.3 The applicant contended that this authority has interpreted Section 95(a) of the CGST Act 2017 to hold that advance ruling can be sought only in respect of ongoing transaction while the said section does not state as such. Further the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of an application on the ground that the transaction in respect of which clarification is sought by the applicant is a concluded one or an ongoing one. It is pertinent to mention here that Section 98 supra deals with only the procedure to be followed on receipt of application. In fact Section 98(2) read with provisos therein empowers this authority to either admit or reject the application, by order, on giving an opportunity of hearing and specifying the reasons for rejection in the said order. 11.5 The applicant, based their entire arguments/contentions on treating their concluded supply as a transaction whereas the Act does not specify the word transaction. GST flyer used this word transaction for ease of understanding. It is also pertinent to mention here that the flyers are not binding on the Department. Further the applicant admitting that the supply is concluded i.e. the work is completed, argues that the works contract has already been executed but the contractee BWSSB have not paid the amount of consideration in full and thereby the transaction is not completed. The impugned works contract awarded to the applicant indubitably amounts to supply of service. The liability to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uous) aspect. A present participle is a verb form (or verbal) made by adding -ing to the base that often functions as an adjective. Use of present participle denotes present and continuing action. Thus the phrase Toeing undertaken' refers to an ongoing and continuous supply. 11.7 In the instant case the question, on which the applicant seeks advance ruling, is not in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the said applicant, but in relation to a completed supply, provided by them. Therefore the instant application is beyond the jurisdiction of this Authority and hence is liable for rejection. 11.8 The applicant vide para 13 of their letter dated 07.08.2023 submitted that the advance ruling sought for is also required for future transactions and opportunities proposed to enter into; the applicant is engaged in the business of pumping stations and reservoirs and has been undertaking the projects in Karnataka as well as in other states. Therefore the applicant requested to admit the application for future contracts and issue the advance ruling for future contracts. 11.9 The applicant is seeking advance ruling on the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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