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The ‘Work Contract’ allotted to the appellant by M/s.RITES ltd. undoubtedly pertains to Railways only, therefore it is covered under Clause 3(v)(a) of Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 which attracts 12% GST

Classification of service— In the instant case, the Advance Ruling was sought for by the appellant to know ‘whether the work done by them can be covered under clause 3(v)(a) of the Notification No.11/2017-Central Tax (Rate) dated 28.06.2017 i.e. Works Contract by way of construction, erection, commissioning or installation of original works pertaining to railways so as to entitle it for charging rate of GST@12% instead of 18%?’ The advance ruling authority ruled that the said contract work is not covered under clause 3(v)(a) of the Notification No.11/2017-Central Tax(Rate) on the grounds that the ‘Works Contract’ does not pertain to Railways. The appellant has challenged the order of the Advance Ruling authority. The issue in the present appeal filed by the appellant is restricted to establishing whether the present ‘Works Contract’ pertains to Railways or otherwise for which a reference is required to be made to clause 3(v)(a) of the Notification No.11/2017-Central Tax(Rate) dated 28.06.2017. As per the scope of work given as per the submission of the appellant as well as copy of Tender issued by M/s. RITES ltd., it appears that the work is pertaining to ‘Railways’. Held that— This authority modify the Advance Ruling issued by the GAAR, by holding that the Work Contract of the appellant is covered under Clause3(v)(a) of the Notification No.11/2017-Central Tax(Rate) dated 28.06.2017.
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