Case Law Details
In re Secure Meter Limited (GST AAR Rajasthan)
ARA, Rajasthan has pronounced judgment on 12.10.2022, in the case of Secure Meter Limited, Udaipur (2022) 38 J.K. Jain’s GST & VR 371, that;
“The activity of O&M of Mansi Wakal dam Project on ESCO Model and O&M work by the applicant is to be undertaken/being undertaken for a Govt. Department, which is in relation to clean drinking water facility to the citizens & is covered under point No.5 of 12th Schedule under Art.243W, Constitution of India. It is a composite supply under Works contract service, to Govt. Authority with Nil GST rate till the value of Goods supplied is up to 25% of the total value of supply. In case the value of Goods exceeds 25% of the total value of the composite supply, the GST rate would be 12%”.
1.Background.─ applicant is in the process for bidding for tender floated by the HIED, a unit of Govt. of Rajasthan for O&M of Mansi Wakal dam Stage-I, complete system including mechanical, electrical, instrumentation installation works switchyards/GSS and maintenance of Dam, pumping machinery, pipe line & tunnel from Mansi Wakal Dam to Nandeshwar filter plant project on ESCO and O&M contract. The terms and scope of the contract combines ESCO Model and O&M contract.
Based on the scope of work as detailed in contract/Tender Document NIT No. 03/2021-22, it is understood that ESCO model requires improvement of the whole water supply system involving pump houses, pumping stations, transmission lines, switchyards, and headwork. Re-modelling of pump foundation and extension of pump house, replacement of fittings/fixtures and painting of all permanent structures like pumping station building, Dam, Tunnel etc. are involved in the contract. Further, we understood that a single tender shall be floated for Operation and Maintenance of Dam, pumping machinery, pipe line & tunnel on ESCO Cum O&M Contract where the preamble of scope specifies that the contract combines ESCO model and O&M work. Thus, the activities under ESCO model and O&M contract are closely linked.
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