In re Sterlite Technologies Limited (GST AAAR Maharashtra)
The supply under the contract for setting of Naval Communication Network for Indian Navy from 1.4.2019 to 31.12.21 are held as falling under entry at serial number 3(vi)(a) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 and accordingly taxable at 6% under CGST and 6% under SGST or 12% under IGST Act.
Read AAR: 18% GST payable on setting of Naval Communication Network
FULL TEXT OF THE ORDER OF APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRA
(Proceedings under Section 101 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017)
1. At the outset, we would like to make it clear that the provisions of both the Central GST Act, 2017 and the Maharashtra GST Act, 2017 are same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the Central GST Act, 2017 would also mean a reference to the same provisions under Maharashtra GST Act, 2017.
2. The present appeal has been filed under Section 100 of the Central GST Act, 2017 (hereinafter also referred to as ‘the CGST Act’) read with Section 100 of the Maharashtra GST Act, 2017 (hereinafter also referred to as the ‘MGST Act’) by Sterlite Technologies Limited a company incorporated the Companies Act, 1956, having its registered office at E-1, E-2, E-3, MIDC Waluj, Aurangabad, Maharashtra-431 136. (Hereinafter also referred to as ‘the Appellant’) against the advance Ruling No. GST-ARA-80/2019-20/8-25 dated 18.02.2022.
BRIEF FACTS OF THE CASE
3.1 The Appellant is registered under the GST Acts bearing GSTIN 27AACES87I9B1ZC. The activities of Applicant involve manufacture of telecom products such as optic fiber, optic fiber cable, etc. and services in relation to laying of these optic fiber cables (either underground or hung overhead) to create a network, setting up of control centres, installation of equipment, commissioning of network and other ancillary activities that may be necessary for creation of network infrastructure for its customers in the telecom industry.
3.2 Indian Navy, governed by Ministry of Defence (Navy), intended to establish a countrywide IP/MPLS based multiprotocol converged network / Naval Communication Network (collectively referred as “network”); as core infrastructure for supporting strategic and operational needs of Navy. Setting up of these networks have been awarded by Navy to Bharat Sanchar Nigam Limited (“BSNL”); which in-turn has floated a tender (Tender No. CA/CNP/NCN-EQP f/T-464/2014 dt 31.01.2014) inviting detailed bids for the same. Purchase order (PO No. CT/PO/3I/2018-19 dt 15.10.2018) was placed by BSNL to the appellant having address IFFCO Tower. 3rd floor, Plot No 3. Sector 29, Gurugram-122002 bearing subject “Procurement. Supply, Installation, Implementation, Commissioning and Maintenance support of Country wide Next Generation IP MPLS Network for Indian Navy on turnkey basis “
3.3 The network to be so created mainly involves stepwise following key activities:-
