(GSTmitraSeries-Advance Ruling-“2”)

📒AAAR WEST BENGAL
📒IN RE: PEW ENGINEERING PVT. LTD.
⛳ Dated:- 21-12-2018
⛳ 29/WBAAR/2018-19 Case No. 27 of 2018

 

🌴 Classification of supply – rate of tax – Composite Contract or Works Contract? – tender received from the Indian Railways for retro-fitment of Twin Pipe Air Brake Systems on wagons – principal supply – Twin Pipe Air Brake Systems or the supply of services of fitting these goods to the wagons?

🌴 Held that:- The contract referred to by the Applicant is that of a composite supply within the meaning of Section 2(30), where the Twin Pipe Air Brake Systems are the Principal Supply as defined under Section 2(90) ibid. The entire contract value is, therefore, taxable at the rate applicable for supply of Twin Pipe Air Brake Systems – Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 [Parts of Railway.. ..Air Brakes and part thereof] which is taxable @ 5% under Serial No. 241 of Schedule I of Notification No. 01/2017 – CT (Rate) dated 28/06/2017 with no benefit of refund of the unutilized input tax credit (as per TRU Clarification issued under F.No.354/1/2018-TRU dated 25/01/2018).

🌴 Ruling:- The Applicant’s contract for retro-fitment of Twin Pipe Air Brake System on Railway Wagons is to be treated as Composite Supply, where the Twin Pipe Air Brake System is the Principal Supply.

🌴 Twin Pipe Air Brake System is classifiable under Tariff Head 8607 21 00 and is taxable @ 5% [in terms of Serial No. 241 of Schedule I of Notification No. 01/2017 – CT (Rate) dated 28/06/2017] with no refund of the unutilized input tax credit [as clarified in TRU Clarification issued under F.No.354/1/2018-TRU dated 25/01/2018].

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