2018 (12) TMI 1226 – AUTHORITY FOR ADVANCE RULING, WEST BENGAL – TMI – Rate of GST – construction of railway siding -r Sl. No 3(v)(a) or Sl No 3(xiii) of Notification no 11/2017-CT(Rate) dated 28.06.2017 – Held that:- The scope of work, as outlined in the Applicant’s agreement with DVC, is that of works contract, as defined under section 2(119) of the GST Act, fit to be called an ‘original work’ within the meaning ascribed to the term in para 2(zs) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, and pertains to ‘railways’, provided it is meant for public carriage of passengers or goods.
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Whether the phrase “public carriage of passenger or goods” prevents a private siding from being included in the definition of ‘railways’ has repeatedly come up for judicial scrutiny. The courts generally held that the phrase ‘public carriage of passengers or goods’ cannot be construed in such manner as to exclude from the ambit of ‘railways’ the sidings built and owned by organizations ot
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ces related to engineering consultancy and monitoring agency to a large number of projects, both of the Government and of the Private Sector, seeks a ruling on whether the rate of GST for the construction of railway siding will be under Sl. No 3(v)(a) or Sl No 3(xiii) of Notification no 11/2017-CT(Rate) dated 28.06.2017 (and analogous notification issued under the WBGST Act), as amended, as applicable (hereinafter referred to as the Rate Notification ) under the CGST/WBGST Acts, 2017 (hereinafter referred to, collectively, as the GST Act ). Advance Ruling is admissible under section 97(2) (a) & (b) of the GST Act. The Applicant submits that the question raised in the Application has neither been decided by nor is pending before any authority under any provisions of the GST Act. The officer concerned raises no objection to the admission of the Application. The Application is, therefore, admitted. 2. The Application states that Damodar Valley Corporation (hereinafter referred to as D
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ction Management Service for construction of Railway Infrastructure including commissioning of the railway system and advance procurement of railway section and P. way materials. The Construction Management includes procurement of Rails and PSC sleepers with fittings, points and crossings, track fitting etc, construction of railway formation and bridges and procurement of stone ballast as per specifications of the Indian Railways, laying of new P. way with Points and Crossings, procurement and installation of electrical equipment etc. Apart from track laying the work includes the cost of all civil work, signalling and telecommunication, overhead electrification and allied electrical work. The basic cost, including the Applicant s fee, for the project, is estimated to be ₹ 496.69 crore. The Applicant also provides a copy of an agreement with M/s Bridge & Roof Co Ltd – a contractor employed for execution of earthwork in railway formation, construction of minor and major bridges
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t or structures, whether pre-fabricated or otherwise. The term railways is not defined in the GST Act. It, however, is defined under section 2(31) of the Railways Act, 1989, meaning a railway, or any portion of a railway, for the public carriage of passengers or goods, and includes (a) All lands within the fences or other boundary marks indicating the limits of the land appurtenant to a railway; (b) All lines of rails, sidings, or yards, or branches used for the purpose of, or in connection with, a railway; (c) All electric traction equipment, power supply and distribution installations used for the purpose of, or in connection with, a railway; (d) All rolling stock, stations, offices, warehouses, wharves, workshops, manufactories, fixed plant and machinery, roads and streets, running rooms, rest houses, institutes, hospitals, waterworks and water supply installations, staff dwellings and any other works constructed for purpose of, or in connection with, railway; (e) All vehicles which
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eaning ascribed to the term in para 2(zs) of Notification No. 12/2017-CT (Rate) dated 28/06/2017, and pertains to railways , provided it is meant for public carriage of passengers or goods. 6. Whether the phrase public carriage of passenger or goods prevents a private siding from being included in the definition of railways has repeatedly come up for judicial scrutiny. The courts generally held that the phrase public carriage of passengers or goods cannot be construed in such manner as to exclude from the ambit of railways the sidings built and owned by organizations other than the government. [Cases relied upon: DMRC -vs- Municipal Corporation of Delhi, 2008 (103) DRJ 369 (Delhi High Court) = 2008 (5) TMI 647 – DELHI HIGH COURT; Commissioner, Central Excise, Raipur -vs- Anand Construction, 2017 (51) STR 435 (CESTAT, Principal Bench, New Delhi) = 2017 (9) TMI 81 – CESTAT NEW DELHI; SMS Infrastructure Ltd -vs- Commissioner, Central Excise, Nagpur, 2017 (47) STR 17 (CESTAT, West Zonal Be
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