Case Law Details
In re L&T Hydrocarbon Engineering Limited (GST AAAR Rajasthan)
Question I – Whether the services provided by the applicant are classified under Sr. No. 24 (ii) of heading 9986 of Notification No. 11/2017 — Central Tax (Rate) dated 28.06.2017 as ‘Support services to exploration, mining or drilling of petroleum crude or natural gas or both’ and attracts GST @ 12%.
Answer: Based on the analysis of activities, the Appellant are required to carry out in pursuance of the EPC Contract and keeping in view the true nature of supplies proposed to be undertaken by the Appellant, the proposed supplies are appropriately classifiable under SAC Heading No. 9954 answering to description ‘Construction Services’ which are in the nature of composite supply defined as works contract.
Question 2 – Whether the services provided by the applicant are classified under `Professional, Technical or Business Service relating to exploration, mining, or drilling of petroleum crude or natural gas or both’ under Sr. No. 21.(ia) (Professional, Technical or Business Service to Mining) of the Rate Notification. and attracts GST (113 12% or Sr. No. 21(ia) of Heading 9983 of Notification No. 11/2017 — Central Tax (Rate) dated 28.06.2017 and attracts GST @ 12%.
Answer: The proposed supplies are specifically covered by SAC Heading No. 9954 and the claim that ‘Construction Services’ of SAC Heading No. 9954 is a general description of the supplies and ‘support services’ of SAC Heading No. 998621 is more specific to describe the proposed supplies is not supported by the EPC Contract as dis-cussed above.
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