Page 61 - GSTL_13th August 2020_Vol 39_Part 2

2020 ] IN RE : HALLIBURTON OFFSHORE SERVICES INC. (OIL INDIA) 147
quate stock of chemicals, additives and other materials. In this regard, Clause
16.2.2 of Schedule-II of the Contract provides as under :
“16.2.2 The Contractor shall supply complete line of mud chemicals, bar-
ites & additives conforming to relevant API/BIS specifications required for
preparation and maintenance of mud and completion fluid. The Contractor
shall maintain adequate stock of all chemicals including contingency back-
up chemicals and ensure timely supply as per operational requirement of
the well for uninterrupted operations. However the payment will be made
on actual consumption basis duly certified by the Company Representative
and OIL Chemist.”
6.3 In view of the above-mentioned scope of work for supply mud
chemicals and additives, it is submitted that such chemicals, additives and mate-
rials supplied under the Contract for supply of mud engineering services are es-
sential to perform service under the Contract. In this connection, as per the defi-
nition of ‘composite supply’ provided under Section 2(30) of the CGST Act, com-
posite supply means a supply is comprising of two or more taxable supply of
goods or services or both, which are naturally bundled and supplied in conjunc-
tion with each other in the ordinary course of business, one of which is a princi-
pal supply.
6.4 In view of the scope of work to be performed under the Contract, it
becomes relevant to analyse whether the supply of mud chemicals and additives
can be said to be part and parcel of a ‘composite supply’. In this regard, an im-
portant factor in the definition of ‘composite supply’ is that the various supplies
(i.e. services and goods in the present case) are naturally bundled and must be sup-
plied ‘in conjunction with each other’.
6.5 In the present case, as mentioned in Clause 10 - Section II of the
Contract, it can be said that chemicals, additives and other materials are required
to be supplied to enable the performance of services, Thus, it can be said that
supply of mud engineering and drill waste management services and supply of
chemicals, additives and other materials are naturally bundled under this Con-
tract.
6.6 With respect to supply to be made in conjunction with each other as
mentioned in the definition of the term ‘composite supply’, they submit that the
term ‘conjunction’ is not defined under the statute. Thus, applicant have referred
the dictionary meanings as below :
Oxford English Dictionary (Online Version)
The action or an instance of two or more events or things occurring
at the same point in time or space
Merriam Webster Dictionary (Online Version)
The state of being conjoined (Conjoined - being, coming, or brought
together so as to meet, touch, overlap, or unite)
Occurrence together in time or space
Chambers Dictionary (Online Version)
A joining together; combination
The coinciding of two or more events
Cambridge Dictionary (Online Version)
The situation in which events or conditions combine or happen to-
gether

GST LAW TIMES  13th August 2020  61