Page 227 - GSTL_21st May 2020_Vol 36_Part 3

2020 ] IN RE : SIEMENS LTD. 473
registered under the Central and State GST legislations vide GSTIN
27AAACS0764L1Z6. The Appellant is a leader in technology solutions for intelli-
gent (smart), sustainable cities, smart grid, building technologies, mobility and
power distribution.
26. The Appellant as Joint venture associate, has entered into contract
with M/s. Power Grid Corporation of India Ltd. (in short ‘PGCIL’), one of the
major Public Sector Undertakings in the State of Haryana (hereinafter referred as
‘PGCIL’) on a joint venture (‘JV’) basis along with M/s. Siemens AG, Germany as
the Lead Partner and M/s. Sumitomo Electric Industries Ltd. Japan as another
Partner. The contract entered by appellant with PGCIL is for on-shore and off-
shore supply of goods and services for complete execution of + 320KV,
2X1000MW VSC based HVDC Terminals and DC XLPE Cable system between
Pugalur and North Trichur. The said contract of supply of goods and services is
divided into 6 contracts by Joint Venture.
The six contracts cover specific and detailed nature of supply of various
goods and services to be executed by members of JV. Out of these 6 contracts two
contracts i.e. third and fifth contract are required to be executed by the Appellant
as a JV’s Associate.
The Third Contract (hereinafter referred to as ‘on-shore Supply Contract/
Third Contract’) provides for supply of equipment and materials including man-
datory spares except + 320kV HVDC Cable (including some of its associated
items) from within India and Type Testing (as applicable), required for the com-
plete execution of + 320KV, 2X1000MW VSC based HVDC Terminals and DC
XLPE Cable system between Pugalur and North Trichur.
The Fifth Contract termed as ‘onshore Service Contract (VSC part)
(NOA-V)’ (hereinafter referred to as ‘on-shore Service Contract/Fifth Contract’) pro-
vides for the subject package, for performance of all other activities inter alia in-
cluding port handling of the plant and equipment including mandatory spares
(except + 320kV HVDC Cable and some of its associated items) to be supplied
from abroad, loading, inland transportation and insurance for delivery at site,
insurance, unloading, storage and handling at site, installation including civil
works, testing and commissioning including Performance Testing in respect of
all Plant and Equipment supplied under both ‘First Contract’ and ‘Third Con-
tract’ and any other services specified in the Bidding Documents referred to here-
inabove. The scope of work under this contract as referred at 3.1 Clause of the
Fifth Contract is as follows :
(a) Local transportation, insurance and other incidental services
(b) Installation charges
(c) Training charges
27. The present query raised by the appellant in Advance Ruling as
well in this appeal relates to the ‘transportation activities’ involved in their Fifth
Contract. The Appellant is entrusted with the responsibility of delivery of the
goods at PGCIL’s site. For this, the Appellant engages local transporters who
issue consignment notes to the Appellant for such transportation of goods and
issue their freight invoices on the Appellant.
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), dated 28 June 2017.

GST LAW TIMES  21st May 2020  227