Page 161 - GSTL_23rd April 2020_Vol 35_Part 4

2020 ] IN RE : BHARAT HEAVY ELECTRICALS LTD. 487
(g) Whether any particular thing done by the applicant with respect to
any goods or services or both amounts to or results in a supply of
goods or services or both within the meaning of that term.
4. Since applicant has sought advance ruling on the valuation issue,
therefore, in terms of said Section 97(2)(c) of the Act, the application filed by the
applicant was admitted. Accordingly hearing was fixed on 5-11-2019 which was
attended by Shri Deepak Agarwal, Deputy Manager, of the applicant. However a
letter dated 6-12-2019 was written to the applicant wherein they were requested
to intimate the authority under which provisions of Foreign Exchange Regula-
tion Act, billing in respect of domestic clearances is being done in foreign curren-
cy. Consequently the applicant vide their letter dated 23-12-2019 submitted their
defence reply in this regard.
5. On perusal of record, we find that an agreement dated 9-2-2019 was
signed between Chief Engineer/Projects-II, Tangedco, Chennai and M/s. Bharat
Heavy Electricals Ltd., Power Sector-Marketing, New Delhi for engineering, pro-
curement & construction of “2 x 660 MW Coal based Udangudi Supercritical
Thermal Power Project-I”. In the said contract, price is in three currencies viz
Rupees, USD and Euro. The certain supply to the said contract is being made by
the applicant wherein billing on customer is to be done in foreign currency and
since the customs declare exchange rate under two categories, one is for import
and second is for export, the applicant sought which exchange rate is applicable
in their case to arrive at the value of taxable supply. Further the applicant vide
their letter dated 23-12-2019 has submitted their defence submissions in this re-
gard and the relevant portion of the same is reproduced as under :
“Normally the foreign currency price in the contract is to cover imported
content of the material used in setting up of Power Station in India wherein
Indian company usually imported goods, make foreign currency payment
to their supplier, in turn foreign currency from the customer.”
6. In this context relevant legal provisions are reproduced as under :
Section 15(1) of the Act : The value of a supply of goods or services or both
shall be the transaction value, which is the price actually paid or payable
for the said supply of goods or services or both where the supplier and the
recipient of the supply are not related and the price is the sole consideration
for the supply.
(2) The value of supply shall include -
(a) any taxes, duties, cesses, fees and charges levied under any
law for the time being in force other than this Act, the State
Goods and Services Tax Act, the Union Territory Goods and
Services Tax Act and the Goods and Services Tax (Compensa-
tion to States) Act, if charged separately by the supplier;
(b) any amount that the supplier is liable to pay in relation to such
supply but which has been incurred by the recipient of the
supply and not included in the price actually paid or payable
for the goods or services or both;
(c) incidental expenses, including commission and packing,
charged by the supplier to the recipient of a supply and any
amount charged for anything done by the supplier in respect
of the supply of goods or services or both at the time of or be-
fore delivery of goods or supply of services;

GST LAW TIMES  23rd April 2020  281