Page 14 - GSTL_30th April 2020_Vol 35_Part 5

xii GST LAW TIMES [ Vol. 35
Rate of GST (Contd.)
— on services of mining lease for charging GST on Royalty - See under
ROYALTY ...................................... 590
— on services of printing of Bus Tickets - See under PRINTING AND
SUPPLY ....................................... 606
— on supply of old machinery as scrap - See under SUPPLY ............ 606
— on supply of printed log books to Autonomous bodies - See under
SUPPLY ....................................... 606
— on supply of waste paper - See under SUPPLY .................. 606
Release of goods on inter-State supply detained on the ground of
misclassification - See under DETENTION .................... 545
Remuneration to Directors is taxable under GST under RCM - See under
SERVICES ...................................... 580
Renting of Immovable Property service - Acquisition of land by
Government of Rajasthan (GoR) undertaking for setting up of thermal
power plant as per agreement entered into with M/s. Raj West Power
Limited (RWPL) - Separate Implementation Agreement signed between
GoR and RWPL for implementation, operation and maintenance of
lignite based thermal power plant and Joint Venture unit (JV) by name of
Barmer Lignite Mining Co. Limited (BLMCL) formed for carrying out
lignite mining - JV company not given title of land and request for
transfer of land, rejected - Demand raised on payment made towards
acquisition of land treating same to be made for transfer of surface right
in favour of JV - HELD : Land procured by GoR and assigned to assessee
- Surface right, contemplated by Revenue as service, emerges out from
activity of mining operation, as incidental activity - Land only acquired
for purpose of making it available to JV company, for setting up of power
plant to meet acute shortage thereof in remote area of State of Rajasthan -
Entire amount spent on acquisition of land deposited by M/s. RWPL, in
escrow account with bank - If due to change of policy of Government of
India and State Government, transfer of land acquired was denied
mutation to JV company, same will not retrospectively convert sale into
services of renting of immovable property - Sale of land completed when
Land Acquisition Officer (LAO) made payment to cultivator - Activities
undertaken by way of acquisition of land from landholder, for project,
not to be treated as service rendered respectively, so as to charge Service
Tax - Incidental activity cannot be treated as main activity, which mining
and benefit arising out of law, to be independent service under category
of renting of immovable property service - Also, even if surface right
presumed to be activity as renting of immovable property, entire sale
consideration could not be treated towards value of service provided -
Treatment of entire amount spent towards acquisition of land, by no
stretch of imagination, can be treated as value towards alleged service -
No element of service involved in transaction - Section 65(90a) of Finance
Act, 1994 — Rajasthan State Mines & Minerals Ltd. v. Commr. of C. Ex. & S.T., Jaipur
(Tri. - Del.) ....................................... 561
Residential society (RWA) receiving services in two parts viz. maintenance
and water supply, charges for water supply includible for determining
taxability of maintenance charges - See under SUPPLY ............. 599
GST LAW TIMES  30th April 2020  14