In re Uttar Pradesh Power Transmission Corpo. Ltd (GST AAAR Uttar Pradesh)
i. Whether the Deposit Work undertaken by Appellant is an integral part of supply of services of transmission or distribution of electricity?
ii. Whether the Deposit Work undertaken by Appellant is ancillary to the principal supply of transmission or distribution of electricity?
iii. Whether the exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will be applicable on Appellant?
iv. Whether ITC is available to the appellant in undertaking “Deposit Works” i.e. creating infrastructure for electricity transmission?
Held BY AAR
In view of difference of opinion between the Members of Appellate Authority for Advance Ruling for Goods and Services Tad, Uttar Pradesh, no ruling can be issued on the questions raised by the appellant, in terms of provisions of Sub section 3 of Section 101 of CGST Act, 2017. Thus the Advance Ruling issued vide Order No. 37 dated 05-08-2019, by the Authority for Advance Ruling, Uttar Pradesh, is deemed to be not in operation.
FULL TEXT OF ORDER OF APPELLATE AUTHORITY OF ADVANCE RULING, (UTTAR PRADESH)
(Proceedings under Section 101 of the Central Goods and Service Tax Act, 2017 andUttar Pradesh Goods and Service Tax Act, 2017)
The present appeal has been filed under Section 100 of the Central Goods and Service Tax Act and Uttar Pradesh Goods and Service Tax Act, 2017 (hereinafter referred to as “the CGST Act and UPGST Act”) by M/s. Uttar Pradesh Power Transmission Corporation Ltd, Shakti Bhawan, 14-A, Ashok Marg, Lucknow, Uttar Pradesh (hereinafter referred to as the “appellant”) against the Advance Ruling, vide Order No. 37 dated 05.08.2019 issued by the Authority for Advance Ruling, Uttar Pradesh.
At the outset, we would like to make it clear that the provisions of both the CGST Act and the UPGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act, 2017 would also mean a reference to the same provisions under the UPGST Act, 2017.
Brief Facts of the Case
1) M/s Uttar Pradesh Power Transmission Corporation Limited, Shakti Bhawan, 14-A, Ashok Marg, Lucknow, Uttar Pradesh – 226020 (the appellant) is a registered assessee under GST having GSTN: 09AAACU8823E1Z9.
2) The appellant was incorporated in 2006 and notified as the state transmission utility of Uttar Pradesh, vide Notification No. 122/U.N.N.P. /24-07 dated 18th July 2007 and entrusted with the business of transmission of electrical energy to various licensees within the State of Uttar Pradesh.
3) The Appellant has submitted application for Advance Ruling dated 02.05.2019 and sought Advance Ruling on the following issues : –
i. Whether the Deposit Work undertaken by Appellant is an integral part of supply of services of transmission or distribution of electricity?
ii. Whether the Deposit Work undertaken by Appellant is ancillary to the principal supply of transmission or distribution of electricity?
iii. Whether the exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will be applicable on Appellant?
iv. Whether ITC is available to the appellant in undertaking “Deposit Works” i.e. creating infrastructure for electricity transmission?
4) The Authority for Advance Ruling, vide Order No. 37 dated 05.08.2019 ruled that:
i. The Deposit Work undertaken by applicant is not an integral part of supply of services of transmission or distribution of electricity.
ii. The Deposit Work undertaken by applicant is not ancillary to the principal supply of transmission or distribution of electricity.
iii. The exemption given under Entry No. 25 of the exemption notification for services by way of transmission or distribution of electricity by an electricity transmission or distribution utility will not be applicable on applicant.
iv. The applicant is not eligible to claim input tax credit with regard to undertaking “Deposit Works” i.e. creating infrastructure for electricity transmission.
5) Being aggrieved with the Order no. 37 dated 05.08.2019, the appellant filed this appeal application before us.
Grounds of appeal submitted by the appellant:-
