Facts: M/s. Khedut Hat is engaged in the business of carrying out blasting work at various sites by means of use of explosives and other materials for which it has obtained licence from Petroleum and Explosives Safety Organization. Further the applicant said that the explosives procured by him for blasting activity are stored only in licenced premises as stated in licence, termed as ‘magazine’, then prior to carrying out blasting activity, the filling process of wholes are done, during the entire blasting activity, explosives are neither handed over to the client nor is it in possession of client.
Issues Involved: The applicant has sought ruling on following question:
Whether the blasting activity carried out by the applicant is to be considered as a ‘supply of goods’ or ‘supply of service’?
Held: The Hon’ble AAR of Gujarat vide Advance Ruling No. GUJ/GAAR/RULING/2018/17 dated August 27, 2018 has stated that the M/s. Khedut Hat uses explosives in the blasting activity at their client’s site. Thus, it would be evident that blasting activity is carried out by the applicant for their client for which the applicant uses explosives. The applicant carries out blasting work with the aid of explosives. Thus, there is deemed supply of explosives in this case in view of the judgement of Hon’ble Supreme Court in the case of Bharat Pest Control (supra) as well as the supply of service in the form of the blasting work. Therefore, the blasting activity carried out by Applicant is classified as composite supply of goods and services and shall be covered by Section 2(30) and Section 8(a) of the CGST Act, 2017 and the GGST Act, 2017.