In re Worley Services India Pvt. Ltd. (GST AAAR Maharashtra)
We, hereby, uphold the MAAR Order No. GST-ARA-27/2020-21/B-38 dated 31.03.2022 (‘Impugned Order’) wherein it has been held that the services provided by the Appellant are neither covered under SI. No. 24(ii) nor under SI. No. 21(ia) of the Rate Notification. As regards the classification of the impugned services, it is held that the impugned services of project management consultancy services provided the Appellant would merit classification under the SAC 998349 bearing description “Other technical and scientific services nowhere else classified, attracting GST at the rate of 18% (CGST @ 9% +SGST@9%)
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING MAHARASHTRA
1. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the MGST Act.
2. The present appeal has been filed under Section 100 of the Central Goods and Services Tax Act 2017 and the Maharashtra Goods and Services Tax Act, 2017 [hereinafter referred to as “CGST Act” and “MGST Act”) by M/s. Worley Services India Pvt. Ltd., New Energy House, Ramkrishna Mandir Road. J B Nagar Kondivita, Andheri East, Mumbai -400059. (“hereinafter referred to as “Appellant”) against the Advance Ruling No GST ARA-27/2020-21/B-38 dated 31.03.2022., pronounced by the Maharashtra Authority for Advance Ruling (hereinafter referred to as “MAAR”).
BRIEF FACTS OF THE CASE
3.1 The Appellant is a company registered under the Indian Companies Act, 1956. The Appellant is part of Worley Parsons Limited, which is a global engineering company providing project delivery and consulting services to the resources and energy sectors and other complex process industries.
3.2 The Appellant is inter alia engaged in the provision of project management consultancy (hereinafter referred as ‘PMC’) services. The Appellant is registered under the Maharashtra Goods and Service Tax Act, 2017 (‘MGST Act’) having registration number 27AAKCS1815L1Z2.
3.3 The Appellant is one of the world’s largest engineering, procurement and construction management (hereinafter referred as ‘EPCM’) service providers engaged in the oil and gas, chemicals, metals and minerals sector. The Appellant has a strength of more than 4,500 professionally qualified people in India, who are providing PMC services and EPCM services to local and international customers. The PMC services are provided to various natural oil and gas companies as well as oil and gas mining and exploration companies.
3.4 Vedanta Limited (hereinafter referred to as the ‘VL’) is a globally diversified natural resources company which is engaged in the business of exploration and mining of various natural resources.
3.5 VL has entered into separate agreements dated 29.05.2018 and 10.01.2019 with the Appellant in relation to the two projects for supply of PMC services. The PMC services are customized and tailor made to suit the requirements of VL and further require extensive technical and sound expertise. As per the agreements, the Appellant is required to continuously review, monitor, manage and control all aspects of the execution of the Projects on behalf of VL to complete it with quality, on time and within the approved cost.
The Appellant is appointed to manage the Projects right from details to designing to commissioning and close out of Projects with VL.
3.6 In relation to the aforesaid scope of work, the Appellant raises invoices on VL for the PMC services provided. Notification No. 19/2019 – Integrated Tax (Rate) dated September 30, 2019 and effective from October 01, 2019, has amended Notification No.08/2017 -Integrated Tax (hereinafter referred as the “Rate Notification”) to inter alia include the following entries:
