Page 176 - GSTL_16th July 2020_Vol. 38_Part 3

414 GST LAW TIMES [ Vol. 38
pronounce advance ruling as it falls under the ambit of the Section 97(2) (a) & (f)
given as under :-
(a) Classification of any goods or services or both;
……………..
(f) Whether applicant is required to be registered;
Further, the applicant being an un-registered person as per the declaration given
by him in Form (ARA-01) the issue raised by the applicant is neither pending for
proceedings nor proceedings were passed by any authority. Based on the above
observations, the applicant is admitted to pronounce advance ruling.
A. Submission and interpretation of the applicant :
(1) As per the said work order, applicant have signed a contract agree-
ment for development work of mines including the earthwork of
drilling, excavation, removal, transportation of green mar-
ble/serpentine and dumping of waste material. Also, we need to
build the roads for the movement of vehicles and are also responsi-
ble for safe maintenance of the haul roads and have to deploy nec-
essary personnel from our own or through some external agency for
the same. If required, we may also purchase the land other than that
in possession for further mining operations at our own expenses.
We also need to deploy necessary mining machinery viz. IR, Po-
clain, JCB, Loader, Trucks along with operation & maintenance per-
sonnel and complete labour including skilled & unskilled manpow-
er, Certified Mines Engineer, Site Accountant and if required, a
qualified Cost & Works Accountant also. The consideration of the
above said works is fixed at Rs. 400 per MT on a target based pro-
duction basis which shall be subject to raising of undistributed bills
on monthly basis and that shall be the full & final consideration in-
cluding all the above said described words. There shall also be a
penalty for short production. The above said consideration will be
subject to TDS deduction under Section 194C of Income-tax Act,
1961;
(2) that as per the SAC 9973, we have not entered into any rent or lease
agreement. We have not supplied only machines with operator ra-
ther than undertaken the whole project of mines development, drill-
ing, excavating of stone & supply of skilled & unskilled manpower
including Qualified Site Engineers, Cost & Work Accountants etc. In
fact, the machineries are actually Special Purpose Vehicles including
JCB & trucks;
(3) that as described above, we have supplied complete manpower for
development and working of mines & not only operator of ma-
chines. In fact, a qualified & RTA Licensed commercial motor vehi-
cle driver is required to run those Special Purpose Vehicles;
(4) that as per our interpretation of Law and considering all the rele-
vant facts, the equipments or vehicles used for carrying out mining
operations are not categorized as “Machinery” as per the GST Act.
The word machinery is nowhere defined in the GST Act, Rather
than we found an explanation of the word “Plant and Machinery”
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