Case Law Details
In re Intellecon Private Limited (GST AAR Gujarat)
Whether the Entry no. 3(v) of the Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 (the Notification), as amended from time to time, is applicable to supplies by Intellecon under the Contract I and Contract II and resultantly, whether such supplies are subjected to 12% rate of Goods and Services Tax (‘GST’).
We find that the EPABX system comes into existence by assembly and connection of various goods/components, wherein transfer of property of such goods is involved in the execution of said contracts. We note that EPABX system once installed cannot be taken to market in as such condition. It would be required to be dismantled and disassembled in parts and components. In the process of dismantling, some parts of the EPABX system such as cables, connectors may even be damaged/ may not be usable again. We, thereby, hold that an installed and commissioned EAPBX system becomes an immovable property and thereby its supply with installation and commissioning is Works Contract Service supply.
The subject supply pertains to Railways as it is for supply in railway office. As per Section 2(3 l)(d) Railways Act, 1989 , railway includes all offices and any other works constructed for the purpose of, or in connection with, railway. The subject supplies of EPABX system for Railways is covered at entry No. 3 (v) of Notification No. 11/2017-CT (R) dated 28-6-17, as amended, and liable to 12% GST.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
Please become a Premium member. If you are already a Premium member, login here to access the full content.
