Classification of service— In the instant case, the Applicant is stated to be engaged in the activity of providing technological and system solutions, including electrification, industrial automation, motion and robotics, data management and production control systems.
Rail Vikas Nigam Ltd (hereinafter RVNL) has awarded it the contract for ‘extension of SCADA for Noapara - Dakshineswar Metro Corridor’ (SCADA stands for Supervisory Control and Data Acquisition). The Applicant seeks a ruling on whether Entry 3(v) of Notification No. 11/2017 - Central Tax (Rate) dated 28/06/2017 (State Notification No. 1135-FT dated 28/06/2017), as amended and hereinafter collectively called the Rate Notification, is applicable for its supply to RVNL by way of erection, commissioning, installation, completion etc. of SCADA System.
In the present context, erection and commissioning of SCADA System involves attaching cables and other electrical equipment to the earth with no intention of removing or shifting them in foreseeable future. Moreover, the parts are so interlinked to constitute a functioning SCADA System that none can be moved separately or without causing substantial damage to the goods attached to earth. The moveable character of the goods like cables and other equipment, therefore, becomes extinct. The Applicant’s supply thus amounts to erection and commissioning of an immovable property involving transfer of property in goods in its execution and, therefore, works contract within the meaning of section 2(119) of the GST Act.
The Applicant is making a composite supply of works contract taxable under Entry No. 3 (v) (a) of Notification No. 11/2017 - Central Tax (Rate) dated 28/06/2017 (State Notification No. 1135-FT dated 28/06/2017), as amended, being erection, commissioning and installation of original work pertaining to railways, including metro.—Abb India Ltd., In Re…  22 TAXLOK.COM 050 (AAR-WB)