Classification of service— In the instant case, the applicant is stated to be engaged in the business of rendering various ‘works contract’ services related to modification/construction, renovation & maintenance of roads & highway projects and works connected with and incidental thereto. he applicant has been awarded a sub-contract from M/s KCC Buildcon Private Limited for shifting of electrical utilities for construction of ‘Proposed 4-Laning of Barasat – Krishnagar Section of NH-34 Project on EPC mode.

Question raised for advance ruling is as follows—

 Whether in the facts and circumstances of the case, does the activity carried out by the applicant falls under Heading 9954: Entry No. 3(iv)(a) of Notification No. 11/2017-CT(R) and liable to tax @ 12%?

In the instant case, contract for construction of National Highway pertaining to Nadia District in the state of West Bengal has been awarded to M/s KCC Buildcon Private Limited on Engineering, Procurement, Construction (EPC, for short) mode. The main contractor i.e., M/s KCC Buildcon Private Limited thereafter, has entered into a sub-contract with the applicant for shifting of electrical utilities in respect of the said project.

Providing services of shifting of electrical utilities only cannot be regarded as services by way of construction of road. We are, therefore, of the opinion that the work being undertaken by the applicant fails to get covered under serial number 3(iv)(a) of the Notification No. 11/2017-Central Tax (Rate) dated 28-6-2017

Held that— The activities being carried out by the applicant as a sub-contractor for shifting of electrical utilities for construction of ‘Proposed 4-Laning of Barasat – Krishnagar Section of NH-34 Project cannot be regarded as composite supply of works contract by way of construction of road as specified under serial number 3(iv)(a) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017, as amended.