Case Law Details
In re Shreejikrupa Project Limited (GST AAR Chhattisgarh)
Applicability of GST rate of 12% on receipt of contract for new construction of CBD railway station, platform, parking, building and all other civil construction within the boundary of station as per entry no.3 (V) of Notification No.11/2017 – Central tax (Rate) dated .28.06.2017.
Here in the impugned case the applicant has been awarded the work of construction of CBD Railway station, commercial complex, boundary etc. at Nava Raipur (C.G) by Nava Raipur Atal Nagar Vikas Pradhikaran [NRANVP] and not by any Railway. Besides this the work allotted and undertaken by the applicant is not for construction of any work related to construction of railway lines or construction of track work relating to any rail project or for that matter any private railway siding.
Construction of complexes, railway station and commercial buildings on land belonging to NRANVP on purely commercial basis can in no way be treated as “pertaining to railways” or works constructed for the purpose of, or in connection with, railway. What NRANVP has awarded the applicant is the work of construction of commercial building / complexes/ station/ boundary etc. on the land owned by NRANVP which by no reasoning can be attributable as being “pertaining to railways”, it not being related to Government railway or non-Government railway. Besides this, on perusal of the copy of drawings of the said project furnished by the applicant we find that at the site where the construction is being undertaken, the applicant appears to have been awarded the construction work of commercial buildings and other business complexes as well, which by no stretch of imagination can be treated as “pertaining to railways” or works constructed–. for the purpose of, or in connection with, railway. Any construction project directly related to railways such as railway line / track, railway siding etc. where railway is involved would be attributable as being “pertaining to Railway”, which incidentally is not the case here. In the instant construction project being undertaken by the applicant there is neither any involvement of “Government railway” nor any “non-Government railway”. Just because construction of a CBD Railway station including commercial complexes/buildings is being undertaken by the applicant, on purely commercial consideration on the basis of a “letter of acceptance cum work order” issued by Chief Executive Officer, Nava Raipur Atai Nagar Vikas Pradhikaran, Raipur does not entitle the work as being categorized as a construction project “pertaining to railways” or for that matter works constructed for the purpose of, or in connection with, railway.
A self-governed, stand-alone construction work of commercial complexes/buildings with in the boundary, station, parking area, roads, pavements, footpath, offices, foot over bridge, boundary as brought about by the applicant in their application, on land owned and belonging to Nava Raipur Atal Nagar Vikas Pradhikaran [NRANVP] on the basis of a “letter of acceptance cum work order” issued by the Chief Executive Officer, Nava Raipur Atal Nagar Vikas Pradhikaran and a tripartite agreement dated 25.4.2022 [between the applicant as the contractor, NRANVP as the agency and Nava Raipur Atal Nagar Smart City Corporation Limited (NRANSCCL) being the employer] for the execution of the said construction, can in no way be held as pertaining to railways or works constructed for the purpose of, or in connection with, railway.
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