Page 181 - GSTL_16th July 2020_Vol. 38_Part 3

2020 ] IN RE : KSC BUILDCON PVT. LTD. 419
Sl. Chapter, Section Description of Service Rate Condi-
No. or Heading (per tion
cent)
24 Heading 9986 [(iii) Support services to mining, 9 -
electricity, gas and water distri-
bution other than (ii)

(5) Further, the Explanatory Notes on Classification of Services which
are based on United Nations Central Product Classification
(UNCPC) and equally mandated by CBIC in determination of Clas-
sification of Services, describes HSN 9986 22 as following -
998622 Support services to other mining n.e.c.
This service code includes draining and pumping of mines; overbur-
den removal and other development and preparation services of mineral
properties and sites, including tunneling, except for oil and gas ex-
traction; test drilling services in connection with mining operations,
except for oil and gas extraction; operation of other mining units on a
fee or contract basis
This service code does not include :
mineral exploration and evaluation services of 998343
- geophysical services, of 998341.
(6) We further find that it is mentioned in the agreement that the appli-
cant is supplying manpower and some special purpose vehicles like
earthmovers to facilitate extraction of mineral from the mining site.
Further, this extracted mineral is also dispatched to M/s. AMP alt-
hough the same has not been explicitly mentioned in the agreement.
We find that the applicant is misconstruing the farts because
nowhere in the agreement, M/s. AMP asks the applicant to lease
manpower and vehicles. In fact, the supply of manpower and vehi-
cles is for the own benefit of the applicant, these supplies are not
made to M/s. AMP but to himself. Therefore, both these supplies
cannot be categorized as independent supplies made to M/s. AMP.
Furthermore, the applicant is receiving a single consideration
of Rs. 400 per ton of the mineral and no separate consideration other
than this is earmarked in the agreement which shows that the sup-
ply of vehicle and manpower is no way related to M/s. AMP.
(7) The applicant has also submitted that he has to purchase/lease land
in nearby in case target fixed by M/s. AMP is not achieved. This is
an ambiguous fact, because firstly, purchase of land is beyond the
scope of GST. Secondly, if applicant here is referring to mining land
of the said mineral then too, it will be a lease of that mining site
which is a different kind of service viz. ‘leasing or rental services
with or without operator under Chapter Heading 9973’.
(8) Further, the contention of the applicant that it is either a Leasing or
rental service of machinery with or without operator or a Works
Contract Service is not tenable on following grounds -

GST LAW TIMES  16th July 2020  181