Case Law Details
In re Dredging And Desiltation Company Private Limited (GST AAR West Bengal)
Introduction: In the recent ruling by the GST AAR West Bengal, the case of In re Dredging And Desiltation Company Private Limited was examined concerning the supply of services for the removal of hump (silt/earth/manure/sludge) by dredging at Najafgarh Drain. The article delves into the details of the case, the applicant’s submission, and the ruling’s implications.
Detailed Analysis:
i. Background and Contract Details: The applicant secured a work order from the Irrigation and Flood Control Department, Government of Delhi, for dredging in Najafgarh Drain. The contract involved desilting and removal of various materials from the drain bed, including earth and sludge, over a specified stretch.
ii. Nature of Work and Exemption Claim: The applicant asserted that the contract primarily constituted dredging and earthwork excavation, qualifying as pure service work. They highlighted that the material cost was less than 5% of the total work order value. Key questions raised included the categorization of the Government of Delhi as a Union Territory and the applicable GST rate.
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