Page 109 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] IN RE : KARNATAKA STATE ELECTRONICS DEVELOPMENT CORPORATION LTD. 435
(iv) The contractor, under Phase II & on the basis of the approval,
should start replacement of light fixtures, brackets, underground
cables, wires, junction boxes, earthing etc. After the LED installation
work is completed, feeder panel-wise street lighting system will be
handed over to the ESCO (contractor), for maintenance for the re-
maining contract period. (Clause 6-Timeline for implementation of
the project under Phase II-Page 17 of the contract).
(v) TMC shall at all times during the term remain the owner of the land
and the existing lighting infrastructure facilities excluding smart
feeder panel and LED light fixtures installed by the contractor. The
contractor shall hand over, the street lighting fixtures/fittings & any
other equipment that have been replaced by the contractor, to TMC
at the stores within 48 hours of replacement. (Clause 7.1 of the con-
tract).
(vi) The Contractor shall remain the owner of the equipment and sys-
tems installed, during the term of the contract; shall undertake all
the procurement of equipment and services necessary for the pro-
ject; shall handover any replaced equipment (which shall be free of
lien), fittings or other items to TMC with proper documentation for
TMC’s verification; shall submit to TMC a list of all the equipment,
fittings or other items that were replaced during the terms of pro-
ject. (Clause 7.2 of the contract)
(vii) At the expiry of the term, all the rights and titles to, and interests in,
all improvements and software & hardware installed in control
room along with equipment constructed or systems installed are
vested in TMC. The contractor shall surrender possession of the said
equipment and systems to TMC in good repair and condition, rea-
sonable wear and tear accepted.
(viii) The TMC shall pay the contractor a fee for the energy savings (the
“Energy Savings Fee”) in Indian rupees, as consideration for the en-
ergy savings achieved with respect to the energy baseline consump-
tion norm.
The energy savings fee is computed as under :
Energy Savings = 90% * {actual energy * {Tariff (5.8/kwh)
Fee for a given saved in a given assumed for mak-
month month(kwh)} ing payments}
(a) 10% represents the actual share of savings passed on to Mu-
nicipal Corporation based on overall savings achieved.
(b) Energy savings in a given month should not be less than the
minimum guaranteed savings of 60% of Municipal Corpora-
tion.
[clause 16.1 of the contract]
10. We find from the analysis of the terms of the contract that the con-
tract involve more than two taxable supplies such as supply of LED lights, fix-
tures & other equipment, their installation, commissioning, operation & mainte-
nance etc. We also find that the impugned supplies of goods and services are in
conjunction with each other in the ordinary course of business and hence the im-
pugned transaction satisfies the ingredient of composite supply, as defined un-
GST LAW TIMES  23rd April 2020  229