Page 223 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SIEMENS LTD. 469
(B) The Appellant has entered into six contracts with one of the major
Public Sector Undertakings in the State of Haryana (hereinafter re-
ferred as ‘the Customer’) for onshore and offshore supply of goods
and services on a joint venture (‘JV’) basis with M/s. Siemens AG,
Germany as the Lead Partner and M/s. Sumitomo Electric Indus-
tries Ltd. Japan as another Partner.
(C) The six contracts cover specific and detailed nature of supply of var-
ious goods and services. Out of which two contracts are required to
be executed by the Appellant as a JV’s Associate. The Third Con-
tract vide Ref. No. CC-CS/698 - SR2/HVDC - 3249/7/G10/R/
NOA-III/7215, dated 22-3-2017 (hereinafter referred to as ‘on-shore
Supply Contract/Third Contract’) provide for supply of goods on ‘ex-
works’ basis. The Third Contract is in relation to placing of orders
by customers for supply of VSC (Voltage Source Converters) based
HVDC Terminals between Pugalur and North Trichur. This in-
volves supply of equipment and services, both on off-shore as well
as on-shore basis.
(D) The Fifth Contract vide Ref. No. CC-CS/698 - SR2/HVDC -
3249/7/G10/R/NOA-V/1217, dated 22-3-2017 termed as ‘on shore
Service Contract (VSC part) (NOA-V)’ (hereinafter referred to as
‘on-shore Service Contract/Fifth Contract’). The scope of work under
this contract as referred at 3.1 Clause of the Fifth Contract is as fol-
lows :
(a) Local transportation, insurance and other incidental services
(b) Installation charges
(c) Training charges
(E) The present query relates to the ‘service activities’ involved in their
Fifth Contract. The Appellant, through an independent ‘Service
Contract vide Ref. RPT-HVDC/C&M/3429/CA-V/7217/BBU-03/
18/533, dated 14-3-2018 (hereinafter referred to as ‘Service Con-
tract’) is entrusted with the responsibility of delivery of the goods at
Customer’s site. For this, the Appellant engages local transporters
who issue consignment notes to the Appellant for such transporta-
tion of goods and issue their freight invoices on the Appellant.
(F) In turn, the Appellant discharges the GST liability under reverse
charge mechanism on such freight amount being paid by it to these
transporters as provided under Notification No. 13/2017-Central
Tax (Rate) F. No. 334/1/2017, dated 28 June, 2017.
(G) The Appellant charges local transportation from the customer as per
the terms of the Service Contract. However, since the consignment
note is already issued by the transporters engaged by the Appellant,
no subsequent additional consignment note is issued by the Appel-
lant.
(H) In terms of Serial No. 18 of Notification No. 12/2017-Central Tax
(Rate) F. No. 334/1/2017, dated 28 June, 2017, an exemption from
Central GST has been provided for services by way of transporta-
tion of goods. The relevant extract of the notification is given
below :

GST LAW TIMES  21st May 2020  223