In re Dredging and Desiltation Company Private Limited (GST AAR West Bengal)
Applicant is required to perform desiltation by dredging the river/nallah, including fixing of pipe lines, floaters and floating pipe lines for disposing water slurry consisting of silt, sand etc. The value of the contract includes cost of labour, materials, consumables, POL, and spare parts and accessories for maintenance of the dredgers. It also includes cost of building islands/dykes by providing geo tubes/geo fabrics and accessories or by tin sheets required for formation of bunds for dumping of the dredged materials. The contract also includes the cost of all pre and post dredging survey. The contract includes the cost of clearing thickly grown water hyacinth from canal and drainage channels. It is evident from the description of the work that it is a composite supply of works contract, improving and modifying the river-bed and embankments. It further appears from the work order that 98% of the work is related to dredging. Communication received from the Executive Engineer, Drainage Division, Puri, referred to in para no. 2.4, clarifies that the cost of material transferred for completion of the dredging work is 5% of the total contract value. Dredging of channels, which includes desiltation of the channels, dumping of dredged materials and building of dykes etc., therefore, appears to be predominantly earthwork, as understood in common parlance.
Applicant is executing a works contract, more than 75% of which is earthwork. The recipient is a government entity and the work being executed is part of an irrigation project under the Department of Water Resources, Government of Odisha.
The Applicant’s supply to Orissa Construction Corporation Ltd. as mentioned in para 4.1 above, was taxable @18% under SI No. 3(vii) of Notification No. 8/2017 — Integrated Tax (Rate) dated 28/06/2017 till 12/10/2017. The supply was taxable @ 5% under SI 3(vii) of Notification No. 8/2017 — Integrated Tax (Rate) dated 28/06/2017, as amended by Notification No. 39/2017 — Integrated Tax (Rate) dated 13/10/2017 with effect from 13/10/2017 till 24/01/2018. It has since been exempted under SI No. 3A of Notification No 9/2017 — Integrated Tax (Rate) dated 28/06/2017, as amended by Notification No. 2/2018 -Integrated Tax (Rate) dated 25/01/2018.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, WEST BENGAL
