Page 111 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : MAGNAM NETLINK PVT. LTD. 349
fication on turn-key basis. This civil work nowhere involves any supply of ma-
chinery or equipment. In absence of the same it will not fall under Entry No.
(v)(f) of Sr. No. 3 of the table under Notification No. 11/2017-Central Tax (Rate)
as amended by Notification No. 20/2017-Central Tax (Rate).
12. It is further observed that Electro-mechanical work comprises of
design, supply, installation and commissioning of equipments including dairy
plant, utility/services, lab equipments, ETP (electro-mechanical works) etc. on
turn-key basis. This part includes Supply Part as well as Installation Part. The
applicant has submitted at the time of personal hearing that the only finished
product being produced by the said Dairy will be pouch milk produced from
raw milk and there is no other finished products being produced in this Dairy
plant. They also submitted that the same can be evidenced from the bill of quan-
tity (electro-mechanical work) Section 4 Reconstruction/Recombination Milk
Marketing Section Point 4.6 Pouch Filling Machine with online pouch coding machine
of Make-Domino on page 237 of 261 of the tender document and there is no other
equipment for finished product packing being supplied in this contract. In view of this,
the only dispute now remains is, in respect of supply of Pouch Filling Machine with
online pouch coding machine of Make-Domino. As admittedly submitted by the ap-
plicant themselves, there is no other equipment for finished product being supplied in
this contract. In view of this, we come to the conclusion that all the supplies of
other parts are out of the purview of machinery or equipment for units under Entry
No. (v)(f) of Sr. No. 3 of the table under Notification No. 11/2017-Central Tax
(Rate) as amended by Notification No. 20/2017-Central Tax (Rate).
13. Now we come to the core issue of supply of Pouch Filling Machine
with online pouch coding machine of Make-Domino. To be eligible under Entry No.
(v)(f) of Sr. No. 3 of the table under Notification No. 11/2017-Central Tax (Rate)
as amended by Notification No. 20/2017-Central Tax (Rate), the said supply
must be a ‘Composite supply of works contract as defined in clause (119) of Section 2 of
the Central Goods and Services Tax Act, 2017, supplied by way of construction, erection,
commissioning, or installation of original works pertaining to, - (f) mechanised food
grain handling system, machinery or equipment for units processing agricultural pro-
duce as food stuff excluding alcoholic beverages’. Therefore the said supply of Pouch
Filling Machine has to pass following tests to be eligible for inclusion under Entry
No. (v)(f) of Sr. No. 3 of the table under Notification No. 11/2017-Central Tax
(Rate) as amended by Notification No. 20/2017-Central Tax (Rate) :-
(a) Composite supply of works contract as defined in clause (119) of
Section 2 of the Central Goods and Services Tax Act, 2017;
(b) Supply by way of construction, erection, commissioning, or installa-
tion of original works; and
(c) Supply pertaining to mechanised food grain handling system, ma-
chinery or equipment for units processing agricultural produce as
food stuff excluding alcoholic beverages’.
14. We discuss the issue point-wise as under :-
(a) Composite supply of works contract as defined in clause (119) of Section 2
of the Central Goods and Services Tax Act, 2017.
14.1 Composite supply is defined under clause (30) of Section 2 of the
Central Goods and Services Tax Act, 2017, as under :
[(30) “composite supply” means a supply made by a taxable person to a
recipient consisting of two or more taxable supplies of goods or services or
GST LAW TIMES  16th July 2020  111