Case Law Details
In Re Skilltech Engineers & Contractors Private Limited (AAR Karnataka)
Single composite contract, but with three connected agreements for Supply of Materials, Erection & Civil Works is of the nature of ‘indivisible’ and squarely falls under the works contract, which is a service.
In the instant case, the applicant, being the successful bidder, got the single composite contract, but with three connected agreements for Supply of Materials, Erection & Civil Works respectively. All the three agreements were awarded to the applicant in response to a single tender notification & the general terms and conditions are commonly applicable to all the three The applicant is supplying the material and providing the erection of towers service and also civil works service. Therefore the contract entered by the applicant is of the nature of ‘indivisible’ and squarely falls under the works contract, which is a service.
Karnataka Power Transmission Corporation Limited (KPTCL) can not be regarded as State Government and Applicant is not entitled for the benefit of concessional rate of GST @12% in terms of Notification No. 24/2017-Central Tax (Rate) dated 21.09.2017.
A statutory body, corporation or an authority created by the Parliament or a State Legislature is neither ‘Government’ nor a ‘local authority’. Such statutory bodies, corporations or authorities are normally created by the Parliament or a State Legislature in exercise of the powers conferred under article 53(3)(b) and article 154(2)(b) of the Constitution respectively. It is a settled position of law (Agarwal Vs. Hindustan Steel AIR 1970 Supreme Court 1150) that the manpower of such statutory authorities or bodies do not become officers subordinate to the President under article 53(1) of the Constitution and similarly to the Governor under article 154(1). Such a statutory body, corporation or an authority as a juridical entity is separate from the State and cannot be regarded as the Central or a State Government and also do not fall in the definition of `local authority’. Thus, regulatory bodies and other autonomous entities would not be regarded as the government or local authorities for the purposes of the GST Acts. Therefore M/s KPTCL can not be a State Government.
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