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AAR
holds that transportation charges received by applicant as part of
Engineering, Procurement and Construction (EPC) contract for setting up
of solar power plant, would be liable to GST as ‘works contract’ u/s
2(119) of CGST Act; Rejects applicant’s claim that since he is fully
responsible for loading, transportation, delivery to the project site
and unloading of equipment as well as required to bear transit
insurance cost, there exists a standalone contract for transportation
of equipment for which separate consideration is received; Observes
that clauses of proposed draft agreement cannot be read in isolation or
out of context, it is necessary to read the contract as a whole to
ascertain the true / correct nature of transaction; Remarks, “As
such this agreement for Engineering Procurement and Construction of
Solar Power plant constitutes composite supply in the nature of Works
Contract”; Resultantly, rejects applicant’s contention that since he is
not GTA inasmuch as he is not issuing any consignment note, no tax is
payable on transportation by road services by virtue of Notification
No. 12/2017-Central Tax (Rate); Further states that intent of
operationalizing Solar Power Plant, though as roof top mounted, is to
set it up as an immovable property which involves civil work; In this
regard, refers to SC decisions in T.T.G. Industries Ltd. and Solid and
Correct Engineering Works and observes, “the intent of the person
at the time of erecting and operationalizing a structure / plant is to
be seen and if the intent is to establish it as an immovable property
at the time of setting up, then it is to be treated as an immovable
property even if later on due to some exigency it is required to be
dismantled or removed” : Maharashtra AAR
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