Case Law Details
In re ITD Cementation India Ltd. (GAT AAAR West Bengal)
It is clear from the very nature of the project that it creates infrastructure for commercial utilization of the national waterway. Though the Multi-modal IWT Terminal will facilitate commerce and business in and around Haldia, West Bengal, its creation is not for propagating any business or commercial interests of IWAI. IWAI is facilitating the vision of Government of India’s ‘Jal Marg Vikas Project’ for creating infrastructure for economic development of the country.
The Inland Waterways Authority of India Act, 1985 empowers IWAI to levy and collect fees and charges from the users of the infrastructural facilities. It is clear from the certificate issued by the Senior Accounts (Control), Ministry of Shipping vide letter No. PAO/Control/Misc./2018-19/199 dated 15.02.2019 that remittances from IWAI are being credited to the Consolidated Fund of India. So the remittances by IWAI to the Ministry of Shipping are part of government revenue and not part of business proceeds. So it is evident that the Appellant is supplying works contract services to IWAI, a government entity, for an original work that is meant for infrastructural development of waterways of India and is not meant for commerce and business. It therefore satisfies the conditions laid down under Serial No. 3 (vi) (a) of the Rate Notification.
In view of above discussion, we rule that amendment to Serial No. 3(vi) of Notification No. 11/2017-CT (Rate) dated 28/06/2017, brought about by Notification No. 24/2017-CT (Rate) dated 21/09/2017 and 31/2017- CT (rate) dated 13/10/2017 are applicable to the Appellant’s supply of ‘Works Contract Service’ towards IWAI for construction of the Multi-modal IWT Terminal at Haldia, West Bengal.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING WEST BENGAL
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