Classification of service— In the instant case, the applicant is a Government Undertaking under the administrative control of Water Resources Investigation & Development Department, Government of West Bengal.

 It is submitted by the applicant that the Agri Engineering Division undertakes civil works as ‘‘Executive Agency or Project Implementing Agency’’ entrusted by various Administrative Departments of Government of West Bengal in the development of rural infrastructure like road, bridge, building etc. under the scheme of MPLAD, BADP, BEUP, RKVY, BCW, RIDF etc and the applicant accordingly gets the work done by different suppliers/contractors.

Question sought for advance  ruling is as follows—

Whether the applicant is required to issue tax invoice to State Government Department/ Directorate on the contract value as determined by the department where the applicant is working as a “Project Implementing Agency”?

In the instant case, the applicant enters into an agreement with the contractor and so is liable to pay the consideration to the contractor. Further, the applicant himself has admitted that as a project implementing agency engaged by the administrative department of Government of West Bengal, he merely acts as an ‘agent’ of the said administrative department to execute the work. In this context, we find that an agent shall also be treated as recipient of supply of goods or services or both since the aforesaid definition has made it abundantly clear that ‘any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as such on behalf of the recipient in relation to the goods or services or both supplied’. Thus, the applicant undisputedly is the recipient of supply provided by the contractor meaning thereby the contractor doesn’t make any supply to the department concerned.

Held that— The applicant while working as a “Project Implementing Agency’ is making supplies to State Government Department/ Directorate and therefore is required to issue tax invoice on the contract value as determined by the department.