Page 110 - GSTL_16th July 2020_Vol. 38_Part 3

348 GST LAW TIMES [ Vol. 38
since it is intended for human consumption and hence the
unit (viz. dairy) pertaining to which works contract is ren-
dered can be clearly said to be processing agricultural pro-
duce as food stuff.
1 6. The applicant also contended that the applicant in the present con-
tract has fulfilled all the requirements stipulated under Entry No. 3(v)(f) of Noti-
fication No. 11/2017-Central Tax (Rate) and hence the applicable tax rate should
be 6%.
7. Without prejudice to the above submission, the applicant also sub-
mitted that Part-B of the referred contract clearly includes design, supply, instal-
lation & commissioning of the dairy plant and machinery and hence the same
must at least be included in the referred Entry No. 3(v)(f) of Notification No.
11/2017-Central Tax (Rate).
8. The applicant also further submitted that the dairy plant will be pro-
cessing raw milk obtained from the farmers and producing pasteurised milk as
well as milk products there from. The raw milk procured by the Dairy will be
regarded as ‘agricultural produce’ and hence the said Dairy shall be covered as a
‘unit processing agricultural produce’.
9. At the time of personal hearing, the applicant also submitted that the
only finished product being produced by the said Dairy will be pouch milk pro-
duced from raw milk and there is no other finished products being produced in
this Dairy plant. The same can be evidenced from the bill of quantity (electro-
mechanical work) Section 4 Reconstruction/Recombination Milk Marketing Sec-
tion Point 4.6 Pouch Filling Machine with online pouch coding machine of Make-
Domino on page 237 of 261 of the tender document submitted in the first sub-
mission. There is no other equipment for finished product packing being supplied in this
contract.
Discussion & findings
10. We have considered the submissions made by the applicant in their ap-
plication for advance ruling as well as at the time of personal hearing. The issue
involved in this case pertains to applicability of Notification No. 20/2017-Central
Tax (Rate), dated 22-8-2017, which amends Notification No. 11/2017-Central Tax
(Rate), dated 28-6-2017, issued under the Central Goods and Services Tax Act,
2017 (herein after referred to as the ‘CGST Act’), in the case of the applicant. As
per work order issued by M/s. Bihar State Milk Cooperative Federation Ltd.,
Patna, vide no. COMFED:EGG:317:Vol-VIII/1787, dated 9-5-2018, the applicant
has been awarded a contract for construction, supply, installation and commis-
sioning of a Dairy Plant at Purnea, under Kosi Dairy Project on turn-key basis.
The said work is divided into two parts viz. Civil work for Rs. 10.71 crore and
Electro-mechanical work for Rs. 14.69 crore. The Electro-mechanical work is
again divided into two parts viz. Supply part for Rs. 13.51 crore and Installation
part for Rs. 1.18 crore.
11. It is observed that Civil work comprises of civil construction of
Dairy plant building, service block, processing, administrative block, workers
amenities, godown, time keeping office, boundary wall, roads, water tank, E.T.P.
(only civil work) water supply/sanitary & plumbing, hard park, inter-
nal/external electrification and all complete works as per the drawing and speci-
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1 Paragraph number as per official text.
GST LAW TIMES  16th July 2020  110