Page 250 - GSTL_21st May 2020_Vol 36_Part 3

496 GST LAW TIMES [ Vol. 36
57. Further in additional submission the appellant has relied on the
Order of Advance Ruling Authority in case of M/s. NR Energy Solutions India Pvt.
Ltd. (GST-ARA-83/2018-19/B-03, dated 8-1-2019) [2019 (26) G.S.T.L. 280 (A.A.R. -
GST)] and submitted that -
“The Advance Ruling Authority had taken divergent view and held that
supply of Relav & Protection Panels and Sub-station Automation System
{SAS}, complete design, manufacture, packing, insurance, transport and de-
livery to sites, training, installation, testing and commissioning of protec-
tion panels with SAS compatible to IEC 61850 protocol, to control and oper-
ate the 220 KV, 132 KV & 33 KV feeders, Power Transformers and equip-
ment cannot be treated as works contract.”
From the order of the Advance Ruling Authority in case of M/s. NR Energy Solu-
tions India Pvt. Ltd. it can be seen that the terms of the contract are limited to sup-
ply and installation of Relay & Protection Panels and Sub-station Automation
System (SAS) which is a small part of system compare to the whole contract
awarded to appellant. The appellant cannot equate the contract of supply and
installation of certain part of the system with the whole contract in the present
case of on-shore and off-shore supply of goods and services for complete execu-
tion of +320KV, 2X1000MW VSC based HVDC Terminals and DC XLPE Cable
system between Pugalur and North Trichur. Hence ratio of advance ruling in
case of M/s. NR Energy Solutions India Pvt. Ltd. is not applicable to present case
before us.
Accordingly, we pass the following order :
ORDER
In view of the above discussions and findings and in terms of Section
101(1) of the CGST Act, 2017 and MGST Act, 2017, we hold that -
58. From the conjoined and harmonious reading of various clauses of
Third contract and Fifth contract awarded to the appellant and their interde-
pendency under the whole contract comprising of six contracts, it can be safely
concluded that the agreement for setting up for + 320KV, 2X1000MW VSC based
HVDC Terminals and DC XLPE Cable system between Pugalur and North Tri-
chur associated with HVDC Bipole link between Western region (Raigarh,
Chhattisgarh) and Southern region (Pugalur, Tamil Nadu-North Trichur, Kerala)
is a composite works contract as defined u/s 2(119) of GST Act and taxable @
18% and hence -
(i) The transportation services provided by the appellant being part of
the whole works contract will be taxable @ 18% as works contract
services and will not be eligible for the exemption as provided in
Serial No. 18 of the Notification No. 12/2017-Central Tax (Rate),
dated the 28th June, 2017 and Notification No. 12/2017-State Tax
(Rate), dated the 29th June, 2017.
(ii) Order passed by the Maharashtra Advance Ruling Authority Order
No. GST-ARA-69/2018-19/B-164, Mumbai dated December 19, 2018
is confirmed.

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GST LAW TIMES  21st May 2020  250