Case Law Details
In re Sealwel Corporation Private Limited (GST AAR Andhra Pradesh)
The works under discussion have been undertaken to execute/implement various projects for (a) conversion of existing LT network into High Voltage Distribution system (HDVS); (b) supply, erection, testing & commissioning of 11 KV autorecloers, 11 KV sectionalisers to industrial feeders on full turn-key basis; and (c) supply, erection, testing & commissioning of 11 KV autorecloers, 11 KV sectionalisers to industrial feeders on full turn-key basis under Integrated Power Development Scheme (IPDS).
As seen from the nature of the work stated in Annexure-II by the applicant, the works are of industrial nature as those works are to be done to industrial feeders too.
Further, the applicant revealed that the contractee is collecting security deposits from the customers. Moreover, the Government of Andhra Pradesh is reimbursing the money for agricultural services to the contractee on behalf of the customers. Therefore, the works executed are to a business entity by the applicant. The contractee is not rendering any non-commercial services in as much as they are getting reimbursed for their commercial activity on behalf of their customers. Therefore, this situation cannot be called as non-commercial at no stretch of imagination.
The above works undertaken by APEPDCL are for business purpose and the benefit of Concessional Rate of 12% (6% under Central tax and 6% State tax) are any other concessional rate is NOT available to the applicant.
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