Shanti Prime Publication Pvt. Ltd.
Classification of service— The Appellant sought an advance ruling on applicability of entry no. 3 of Notification No 12/2017-Central Tax to the services provided by the applicant by way of providing energy saving street lighting services including operation and maintenance of the street lighting installations to Bhubanewsar Municipal Corporation (BMC).
The AAR, Odisha in its order stated that the activities undertaken by the applicant do not constitute supply of pure services as it involves significant use of goods/materials. It is also a case of supply of works contract service by the Applicant to BMC. The benefit of exemption from tax in terms of S 1.3 of the notification No. 12/2017-Central Tax (Rate), dated 28.06.2017 is not available to the applicant.
The appellant is of the view that the activity of management, operation and maintenance of energy saving equipment owned and possessed by them under the Energy Performance Contract would not qualify as a ‘composite supply’ in terms of Section 2(30) of the CGST Act.
Held that— On the contract, it is clearly specified that all installed equipments constructed or system installed are transferred to BMC in good condition. Therefore, the activities carried out by the appellant in the instant case will be considered as a supply of goods in terms of the provisions of Schedule II, Para 4-A of CGST Act, 2017 / SGST Act, 2017. The appellant under the grounds of appeal has not put forth any arguments or legal provisions to negate the applicability. Therefore, the contention of the appellant that the transaction doesn’t involve any supply of goods is not sustainable.—Super Wealth Financial Enterprises Private Ltd., In Re..  10 TAXLOK.COM 095 (AAAR-Odisha)