Page 177 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : KSC BUILDCON PVT. LTD. 415
in CGST Act which is stated as “plant and machinery” means appa-
ratus, equipment, and machinery fixed to earth by foundation or
structural support that are used for making outward supply of
goods or services or both and includes such foundation and struc-
tural supports. From the above, it is clear that we have not supplied
any machinery rather used the Special Purpose Vehicles for the exe-
cution of the mining work;
(5) that we have entered into a Contract Agreement & not a lease/rent
agreement;
(6) that we have supplied complete manpower for carrying out the
mining operations and not merely operator of machines;
(7) that we have not found any other Chapter head other than SAC
9954 i.e. Composite supply of Work Contract Services to classify the
above said work allotted to us;
(8) that we seek clarification regarding applicability of SAC for a work
allotted to us whose heading reads as “ALLOTMENT OF WORK
FOR HIRING MINING MACHINERY ALONG WITH MANPOWER
TO PRODUCE APPROXIMATELY 2,00,000 MT PER MONTH ON
OUTPUT PER TON BASIS”;
(9) that if we go through the complete scope of work, the said relates to
COMPOSITE SUPPLY OF WORK CONTRACT AS DEFINED IN
CLAUSE (119) OF SECTION 2 OF CGST ACT, 2017 INVOLVING
PRE-DOMINANTLY EARTH WORK rather than merely a hiring or
leasing contract involving development of mines, drilling, excavat-
ing of stone & supply of skilled and unskilled manpower. The
above as per our interpretation of law falls under SAC-9954 & we
have found 2 Notifications of Central Tax (rate) in this regard which
are as under :-

Notification No. Heading & Description Rate %
Serial No.
11/2017-Central Heading 3(ii) Composite Supply of 9%
Tax 9954 Work Contract as defined in
Sl. No. 3. clause (119) of Section 2 of
CGST Act, 2017.
31/2017-Central Heading 3(vii) Composite Supply 2.5%
Tax 9954 of Work Contract as defined
SERIAL 3 in clause (119) of Section 2
of CGST Act, 2017 provided
to a government entity.

(10) that we had sought a question in our ARA-01 on difference between
operator and manpower as per GST provisions, as we have to sup-
ply special purpose vehicles including Poclain, TRUCKS & JCBs
which as per the Motor Vehicle Act requires a commercial licensed
driver to drive & we have to supply skilled and unskilled manpow-
er including qualified site engineers, Cost & work accountants etc.

GST LAW TIMES  16th July 2020  177