Design, manufacture, testing & commissioning of equipment is to be treated as mixed supply: AAAR

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  • Last Updated on 9 August, 2022

mixed supply

Case Details: Appellate Authority for Advance Ruling, Telangana Medha Servo Drives (P.) Ltd., In re - [2022] 141 143 (AAAR-TELANGANA)

Judiciary and Counsel Details

    • Neetu Prasad & B.V. Sivanagakumari, Member

Facts of the Case

The appellant was manufacturer of electronic equipment for locomotives and coaches for Indian Railways and Metro Railways. It filed an application for advance ruling to determine whether contract for design, manufacturing, supply, installation, operation and maintenance of multiple electronic equipment for locomotives and coaches would be treated as mixed supply of composite supply. The Authority for Advance Ruling held that it would be treated as mixed supply. It filed appeal against the order.


The Appellate Authority for Advance Ruling observed that as per the agreement, the appellant would be required to provide services of design, development, manufacture, supply, testing and commissioning of each set consisting of multiple items including both goods and services. The supplies should be supplied in conjunction with each other to function as one complete rake set. However, the supplies involved were not naturally bundled and only one of supplies can’t be determined as principal supply. Therefore, it was held that it would be treated as mixed supply.

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