Page 105 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : MAGNAM NETLINK PVT. LTD. 343
2020 (38) G.S.T.L. 343 (A.A.R. - GST - Guj.)

BEFORE THE AUTHORITY FOR ADVANCE RULING UNDER GST,
GUJARAT
S/Shri Mohit Agrawal and Sanjay Saxena Members
IN RE : MAGNAM NETLINK PVT. LTD.

Advance Ruling No. GUJ/GAAR/R/06/2020, dated 19-3-2020
in Application No. Advance Ruling/SGST & CGST/2018/AR/44
Composite supply - Works contract - Construction, supply, installation
and commissioning of a Dairy Plant at Purnea, under Kosi Dairy Project on
turnkey basis - Civil work nowhere involves any supply of machinery or
equipment and therefore, not falls under Entry No. (v)(f) of Sr. No. 3 of the
table under Notification No. 11/2017-C.T. (Rate) as amended by Notification
No. 20/2017-C.T. (Rate) - Electro-mechanical work involves only supply of
Pouch Filling Machine with online pouch coding machine of Make-Domino -
Detailed item-wise price break-up based on supply of individual equipment
with GST rate applicable as per individual HSN code being required to be
given by applicant to Managing Director of the Bihar State Milk Co-operative
Federation Limited, Patna, individual supply of Pouch Filling Machine not
falls under ‘Composite supply’ - Pouch Filling Machine being movable and
saleable in the market cannot be termed as immovable property although it
may be fixed to earth after delivery at the place of the recipient - Hence, the
said machinery is not a supply of ‘works contract’ - Machinery not an ‘original
work’ being already in existence and no new construction taking place - Milk
already undergone various processes of filtration, straining, chilling, pasteur-
izing, cream processing, standardising, etc. and the said machinery not used
for processing agricultural produce - Accordingly, supply of Pouch Filling Ma-
chine with online pouch coding machine of Make-Domino, as well as other
supplies of civil work and electro-mechanical work will not fall under Entry
No. (v)(f) of Sr. No. 3 of the table under Notification No. 11/2017-C.T. (Rate) as
amended by Notification No. 20/2017-C.T. (Rate). [paras 10, 11, 12, 13, 14.2, 14.4,
14.5, 14.6, 14.9, 15]
Ruling in favour of department
CASES CITED
Harrisons Malayalam — (2004) 1 SCC 256 — Referred ......................................................................... [Para 6]
Sirpur Paper Mills Ltd. v. Collector — 1998 (97) E.L.T. 3 (S.C.) — Relied on ......................... [Paras 6, 14.4]
T.T.G. Industries Ltd. v. Collector — 2004 (167) E.L.T. 501 (S.C.) — Referred .................................. [Para 6]
REPRESENTED BY : Shri Abhay Desai, CA, for the Assessee.
[Order]. - Brief Facts : The applicant has submitted that they are in the
business of providing services of providing execution of works contract regard-
ing EPC (engineering, procurement and construction/commissioning) solutions
to dairy and food processing industry. They have been awarded a contract for
design, construction, supply, installation and commissioning of a Dairy Plant for
the Bihar State Milk Cooperative Federation Ltd. The said contract is divided into
two parts viz :-
Part - A : Civil work - This comprises of civil construction of Dairy plant
building, service block, processing, administrative block, workers ameni-
ties, godown, time keeping office, boundary wall, roads, water tank,
GST LAW TIMES  16th July 2020  105