Page 161 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : SHREE HARI ENGINEERS & CONTRACTORS 399
The applicant has therefore submitted that M/s. Bharat Broadband Network Ltd.
holds more than 90% (i.e. 100%), it satisfies the condition of Government entity.
7. The applicant has submitted that the corporate body M/s. Railtel
Corporation of India Ltd. is an entity incorporated under the sub-category of
‘Union Government Company’ under Companies Act and submitted a copy of
the Company Master Data and a copy of MGT-7 (as available from the database
of Ministry of Corporate Affairs) wherein as per para-VI(a)(Sr. No. 2), the Central
Government holds 100% shares in M/s. Railtel Corporation of India Ltd. The
applicant has also submitted copies of Notification No. 11/2017-Central Tax
(Rates), including the amendment as per Notification No. 24/2017-Central Tax
(Rates) and Notification No. 31/2017-Central Tax (Rates) as per Annexure-F,
copy of tender as Annexure-G and copy of letter of acceptance of the tender as
Annexure-H (containing letter of acceptance dated 12-5-2018 issued by M/s.
Railtel Corporation of India Ltd. to M/s. Shree Hari Engineers and Contractors,
Bhuj-Kachchh containing the schedule of work to be carried out in 02 blocks of
Abdasa and Nakhatrana of Kachchh District) by the applicant alongwith the
rates.. The applicant has concluded their submission with a request to consider
the issue under the Advance Ruling application and allow them to charge GST at
the rate of 12%.
Discussion & findings
8. We have considered the submissions made by the applicant in their
application for advance ruling as well as at the time of personal hearing. The is-
sue involved in this case pertains to applicability of Notification No. 24/2017-
Central Tax (Rate), dated 21-9-2017, which amends Notification No. 11/2017-
Central Tax (Rate), dated 28-6-2017, issued under the Central Goods and Services
Tax Act, 2017 (hereinafter referred to as the ‘CGST Act’), in the case of the appli-
cant. As per the letter of acceptance/work order issued by M/s. Railtel Corpora-
tion India Ltd. No. Rail Tel/Tender/OT/WR/NOFN/2017-18/04/LOA, dated
26-10-2017 as well as the agreement dated 9-2-2018 signed between the applicant
and M/s. Railtel Corporation Ltd., the applicant has been awarded a contract for
excavation of trenches and laying of Optical Fibre Cables (OFC) through ducts,
testing, commissioning of OFC and maintenance in the 01 (one) Block (Na-
khatrana) of Kachchh District of Gujarat State. The amount involved in the said
contract is Rs. 1,69,75,575/-. The applicant has also submitted another letter of
acceptance/work order No. Rail Tel/Tender/OT/WR/NOFN/2017-18/49/
LOA, dated 12-5-2018 issued by M/s. Railtel Corporation India Ltd. regarding a
contract for excavation of trenches and laying of Optical Fibre Cables (OFC)
through ducts, testing, commissioning of OFC and maintenance in the 02 Blocks
of Abdasa and Nakhatarana of Kachchh District of Gujarat State valued at Rs.
1,86,41,523/-. Further, as per the Tripartite Memorandum of Understanding
signed between Department of Telecommunications of Government of India,
Government of Gujarat and Bharat Broadband Network Ltd. dated 12-4-2013, the
scope of the work in the project includes : (a) connecting the gram panchayats of
India on Optical fiber using the fibers of other PSUs/TSPs and/or laying incre-
mental fiber network for providing broadband connectivity. (b) setting up of
suitable telecom network on this national optical fiber network for enabling of
various types of applications in the gram panchayats/villages (c) operation and
maintenance of this project in accordance with the Central Government/DOT
guidelines.
GST LAW TIMES  16th July 2020  161