Page 184 - GSTL_3rd September 2020_Vol 40_Part 1

118 GST LAW TIMES [ Vol. 40
related activity of immovable property even when construction activity does not
fall into the scope of works contract. However, works contract of construction
activity is eligible for Input Tax Credit if done in respect of plant and machinery.
Plant and machinery has been specifically defined as any equipment, apparatus
attached to earth by foundation or structural support used for supply of goods or
services. Plant and machinery specifically excludes land, building & any other
civil structures, telecom towers, pipelines etc. As per the definition of works con-
tract, the works contract inter alia include construction of any immovable property
wherein transfer of property in goods (whether as goods or in some other form)
is involved in the execution of such contract. On the other hand Construction has
been defined under explanation to Section 17(5)(c) and (d) as reconstruction, re-
pairs, renovation, additions etc. to an immovable property the cost of such work
is capitalised. Thus, Construction activity will not qualify as works contract if
there is no transfer of property in goods involved i.e. the contractor is supplying
service and there is no supply of goods. Thus, works contract may or may not be
a construction.
5.17 From the scope of work as discussed in preceding para 5.5 pertain-
ing to the said Package-I, II & IV, it is seen that the work allotted includes Con-
struction of Pathways, Construction of Level Crossing Gates, Dismantling of ex-
isting structures if any, Construction of Loading Platforms, Construction of
drains along the track at the required locations, Installation of Barbed wire fenc-
ing along the forest boundary, Construction of Service buildings for Solid State
Interlocking cabin, Block cabin, Crew-guard rest, Commercial officer, Rolling
hut, Weighbridges, Loco shed, Carriage and wagon shed, Extension of Level
crossing Gates and construction of gate lodge Buildings, construction of Railway
staff quarters, Station building and other ancillary works, dismantling of existing
structures, if any, Construction of Platforms, Construction of Foot over bridge,
Construction of Masonry/CC drains, Provision of fencing as required, Approach
Roads as required, Construction of retaining walls, if required etc. There hardly
remains any doubt that the above listed works are nothing but civil work, even-
tually resulting in civil structures.
6. The large part of the listed works are located outside the premises of
the plant area :
The aforesaid Tender document, furnished by the Appellant in respect of
Tender Enquiry No. : HO(contracts)/NISP/RSP/357, dated 26-3-2014 floated by
M/s. NMDC Ltd., makes it abundantly clear that Package-I is for Civil and Rail-
way allied works in connection with the construction of Private Railway siding
for the proposed 3.0 MTPA Integrated steel plant at Nagarnar, Chhattisgarh on
item rate basis. The civil works include execution of earth work, disposal of sur-
plus and unserviceable earth/material outside the work limit, construction of
pathways, execution of Minor bridges/culverts, nallah crossings, road bridges,
construction of railway crossing gates, construction of loading platforms, instal-
lation and commissioning of In-motion weighbridges, installation and commis-
sioning of static weighbridges, construction of drains along the track at the re-
quired locations, installation of barbed wire fencing along the forest boundary
etc. Similarly railway allied works comprises of rails, supply of BG Mono-block
Pre-stressed (PSC) Sleeper, supply of fastenings, fish plates, fish bolts, welding of
rails, supply of all materials and fabrication & dead ends, supply of all materials
and construction of rail road level crossings, fixing of check rails on level cross-
ings, curves and other locations etc.
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