In re Essel Mining & Industries Limited (GST AAAR Odisha)
The present appeal was filed before the Odisha Appellate Authority for Advance Ruling (AAAR) under Section 100 of the CGST Act, 2017 against Advance Ruling Order No. 01/ODISHA-AAR/2024-25 dated 27.08.2024. The issue raised before the Authority for Advance Ruling (AAR) was whether the handover of building and civil structures, including a railway siding, by the appellant to Odisha Mining Corporation Limited (OMC) amounted to sale of building covered under Clause 5 of Schedule III of the CGST Act, 2017.
The appellant was engaged in mining and supply of iron and manganese. Its mining lease expired on 31.03.2020, after which the Government of Odisha granted the lease to OMC. OMC approached the appellant for acquisition of capital assets, including plant, machinery, building infrastructure and railway siding. A deed for handing over building, civil structure and plant and machinery was executed on 28.06.2023 on an “as is where is” basis for agreed consideration. The appellant discharged GST on plant and machinery treating it as supply of goods. However, in respect of buildings and civil structures, the appellant treated the transaction as sale of immovable property covered under Para 5 of Schedule III, i.e., neither supply of goods nor services.
