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The supply of Pouch Filling Machine with online pouch coding machine of Make-Domino, as well as other supplies of civil work and electro-mechanical work will not considered as machinery used for processing agricultural produce.

Works Contract The issue involved in this case pertains to applicability of notification no. 20/2017-Central Tax (Rate) dated 22.08.2017. As per work order issued by M/s Bihar State Milk Cooperative Federation Ltd, the applicant has been awarded a contract for construction, supply, installation and commissioning of a Dairy Plant at Purnea, under Kosi Dairy Project on turn-key basis.

Held that—The supply being discussed herein relates to an individual item of goods namely, Pouch Filling Machine with online pouch coding machine of Make-Domino. This item being movable and saleable in the market cannot in any case be termed as immovable property. However, it may be fixed to earth after delivery at the place of the recipient but till the supply to the place of the recipient it is movable. The item in question will already be in existence before supply. This said item does not come into existence by virtue of any work to be defined as works contract. The said items will not be manufactured at site but it will be supplied from a manufacturer whose brand is also affixed on the product, namely ‘DOMINO’. The Apex Court, in the case of M/s Sirpur Paper Mills Ltd. has held that just because a plant and machinery are fixed in the earth for better functioning, it does not automatically become an immovable property.

In view of the above we find that the above said supply of Pouch Filling Machine with online pouch coding machine of Make-Domino, is not an immovable property and hence supply of the same cannot be termed as supply of ‘works contract’.

Thus we come to the conclusion that the supply of Pouch Filling Machine with online pouch coding machine of Make-Domino, as well as other supplies of civil work and electro-mechanical work will NOT fall under Entry No. (v)(f) of Sr. No. 3 of the table under Notification No. 11/2017-Central Tax (Rate) as amended by Notification No. 20/2017-Central Tax (Rate).—Magnam Netlink Private Limited, In Re… [2020] 22 TAXLOK.COM 134 (AAR-Gujarat)