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GST – Place of Supply of Works contract spread over two States, Intra-State supply or Inter-State supply, Refund of TDS paid – Petitioner was awarded a contract by the State of Telangana for the construction of the Irrigation Barrage. The project was spread across the States of Telangana and Maharashtra - Authorities rejected the petitioner's refund application for excess tax deducted and remitted to Telangana, and instead imposed a demand for additional tax liability in Telangana - Whether the work executed by the petitioner JV falls under Section 12(2)(a) or 12(3) of the IGST Act, 2017 for the purpose of determining the place of supply – HELD - As per the explanation to Section 12(3) of the IGST Act, 2017, when an immovable property is located in more than one State, the place of supply of service shall be determined by the service supplied in each State in proportionate to value of services collected or determined in terms of contract - Section 12(2)(a) is applicable only to the services which does not fall under Sections 12(3) to 12(14) of IGST Act. Thus, Section 12(2) is a residuary provision and will apply only if the nature of the activity done by the petitioner does not fall under Section 12(3) of the IGST Act - The contention of the Revenue that the applicable provision is Section 12(2)(a) of the IGST Act in view of the nature of works undertaken by the petitioner and not Section 12(3) is incorrect and untenable - The construction of barrage is spread out in two States and the value for services was borne wholly by the State of Telangana. In view of the admitted fact that construction is carried out in two States, the place of supply of service shall be treated as made in each State equivalent to the proportion of work executed in that State, in accordance with the terms of the Agreement - place of supply of service in both the States can be assessed only on the basis of actual works executed in both Telangana and Maharashtra States and also as per the terms of the agreement as specified in the explanation to Section 12(3) of IGST Act - the nature of supply is intra-state supply in proportion to the works carried out in each State. When the nature of supply is intra-state, the tax liability shall be discharged individually in each State to the extent of proportion of the works executed therein – in view of absence of any material on record with regard to the proportion of work executed in each State by each partner of JV, the issue and applicability of tax liability cannot be answered - the petitioner is granted liberty to approach the adjudicating authority for refund of the TDS amount relating to Maharashtra – The petition is disposed of - Whether the nature of supply is intra-state or inter-state – HELD - Since the place of supply is determined based on the proportion of work executed in each state, the nature of supply shall be intra-state in proportion to the work carried out in the respective states by the contractors registered in those States, as per Sections 7 and 8 of the IGST Act - Whether the refund application submitted by the petitioner is maintainable – HELD - the deduction made by respondent No.4 with respect to the invoices raised by the petitioner for the works executed in the State of Maharashtra is improper as respondent No.4 is not registered as a deducting authority in the State of Maharashtra under Section 24(vi). Therefore, in the light of above legal position, the respondent No.4 can only deduct GST for the invoices raised by the supplier located in Telangana for the works executed in Telangana and ought not to have deducted GST in respect of the bills raised for the works executed in Maharashtra - the entire TDS amount deducted from the invoices for work executed in Maharashtra was remitted to Telangana and is lying in the electronic cash ledger of the petitioner. The reasons given by the authorities for rejecting the refund claim are improper and unsustainable. The petitioner shall be at liberty to approach the adjudicating authority with relevant material to substantiate the discharge of tax liability in Maharashtra, and the authority shall consider the same and pass appropriate orders for refund of the TDS amount relating to Maharashtra
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