Nature of supply— The subject appeal has been filed passed by the Telangana State Authority for Advance Ruling.

The applicant contends that the supply made to M/s Integral Coach Factory is not a mixed supply as the goods and services are supplied at individual price separately but not for a single price.

In the present case ,the applicant is involved in the supply of ‘design , development , manufacture , supply, testing and commissioning of 152 sets of 25 KV AC micro processor controlled IGT based 3 phase propulsion system and equipment to rdso specification’.

It is therefore required to examine the definition of Mixed supply as per Sub-section (74) of section 2 of the CGST Act.

Price break up doesn’t necessarily imply that the items are being supplied separately for separate prices. Here, though the supplies are capable of being made individually, the essential concomitant of the present agreement is that they should be supplied in conjunction with each other to function as one complete rake set. The schedule of delivery mentions that the entire set is to be delivered at once but not the individual items separately. Even as per terms of payment, payment is done for the entire set and not individual items, implying the supply is being made for single price per unit. Further, this supply cannot be termed a composite supply because the supplies involved are not naturally bundled and only one of the supply cannot be determined as a principal supply.

Hence, in this case there are two or more individual supplies, supplied in conjunction with each other by a taxable person for a single price, which does not constitute a composite supply. Thereby, the supply satisfies all the pre-requisites to be termed as a “Mixed Supply”. The decisions relied upon by the applicant are distinguishable to the facts of the case on hand.

Held that— The Supply provided by M/s Medha Servo Drives Private Limited (Appellant) to M/s Integral Coach Factory, Chennai is a mixed supply. Therefore the order passed by the Advance Ruling Authority is being upheld on this issue. The subject appeal is disposed accordingly.