Page 161 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SAN ENGINEERING & LOCOMOTIVE CO. LTD. 407
Installation and commissioning invoice can be only raised after ob-
taining confirmation from the customer that the Installation and
Commissioning has been completed and a Completion Certificate to
that effect has been issued.
4. The applicant furnishes some facts relevant to the stated activity.
(a) The applicant states that he is engaged in manufacture of power
packs classifiable under HSN Code Chapter 86 and also in activity
of installation and commissioning of the same.
(b) The applicant has been issued with purchase Order Bearing No.
08/16/2730/1838/F, dated 5-11-2016 by M/s. Integral Coach Facto-
ry, Chennai to supply “twin power pack with underslung engine
and hydraulic transmission and commissioning/installation of the
same in High Speed Self Propelled Accident Relief Train (HS
SPART)”. As per the said purchase order, the applicant was re-
quired to supply 18 numbers of Power Pack to M/s. Integral Coach
Factory, Chennai and also to install/commission the same in HS
SPART. The applicant states that he has supplied and installed
some of the Power Packs in HS SPART during the Excise/Service
Tax regime and remaining units of Power Packs during GST regime.
(c) The applicant states that as per Part-I of the said Purchase Order,
the break-up of the price of each Power Pack, packing charges,
freight charges, installation/commission charges and duties/taxes
is as follows :

Details Price (Rs.)
Basic value for supply of each Power Packs Rs. 5,13,62,000-00
Packing Charges Rs. 7,70,000-00 extra
Duties/Taxes As applicable
Freight Charges Rs. 2,91,000-00 extra
Other Commissioning/Installation Rs. 40,00,000-00 extra
Charges charges
Insurance Charges Rs. 2,04,000-00 extra

(d) Since the value for the ‘supply of goods’ and ‘supply of services’ are
separately provided in the Purchase Orders and the same not being
naturally bundled and not supplied in conjunction with each other
in the ordinary course of business, the applicant does not treat the
supply of the same as ‘Composite Supply’.
(e) The applicant states that he on supply of the power packs in the
GST regime, as per Sl. No. 241 of Schedule-I to the Notification No.
1/2017-I.T. (Rate), dated 28-6-2017 in their invoices charged IGST @
5% on the basic value of Rs. 5,13,62,000-00 as agreed in the said Pur-
chase Order.
(f) In view of the value for the ‘Freight & Insurance Charges’ and
‘Commissioning/Installation charges’ being separately mentioned
in the said Purchase Order, the applicant states that, by treating the
same as “supply of service” has raised separate invoices for “Freight
& Insurance Charges” and “Commissioning/Installation Charges”.
GST LAW TIMES  21st May 2020  161