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2019 (12) TMI 1329 - APPELLATE AUTHORITY FOR ADVANCE RULING, MAHARASHTRALevy of GST - Educational Institution - separate persons/entities or not - Charitable Society, having the main object and factually engaged in imparting Medical Education - requirement of registration in view of the provisions of section 23 of the said act - taxable supply or not - Challenge to AAR decision - HELD THAT:- It is apparent that M/s. Kasturba Health Society was constituted in the year 1964 with the main objective of catering to the health needs of rural population of India. It is registered under the Societies Registration Act, 1860 and Bombay Public Trust Act, 1950. On the contrary, M/s. MGIMS is a medical institution, which is a joint venture of the Central Government, and the State Government of Maharashtra, and the Appellant Society having the agreed arrangement of funding the said project in the ratio of 50:25:25 respectively. The above said 25% of the operational cost to be borne by the Appellant Society will be collected from the fees paid by the students and recoupment charges received from the patients availing treatment in the said medical institute. The operation of this medical institute is controlled and regulated by the Governing Council, which comprises of 10 members and a chairman. Out of these 10 members, 5 members are nominated by the Appellant Society, while 5 members are nominated from the Central Government and the State Government, which, inter alia, regulate and supervise the teaching and training procedures adopted by the said Medical Institution. It is adequately clear that the Appellant Society and M/s. MGIMS, the medical institute, which is a joint venture undertaking of the Central Government, State Government and the Appellant Society, and which is controlled and regulated by the Governing Council comprising of members, which also includes the nominated members from the Central Government and State Government besides the members nominated from the Appellant Society are separate entities/persons having their own role and functions. Thus, we completely agree with the AAR findings in this regard, who also observed the above said facts, and accordingly, inferred that the Appellant society and M/s. MGIMS are two separate and independent persons in so far as the GST law is concerned - MGIMS and the Appellant Society are two separate establishment. The Appellant have relied upon the various documentary evidences, viz.- grant by the Central and State Govt. in the name of KHS for running the medical institute, e.g., MGIMS; Pension Fund registration, which are in the name of KHS for the employees working at MGIMS; Grant of PAN is in the name of KHS through which all the financial transaction relating to MGIMS are reported to Central Govt.; registration in the name of KHS for carrying out the Research activities in the fields of Medical Education and Health Care by the staff working at MGIMS granted by the Dept. of Science and Technology of Govt. of India; for the purpose of regulating the transaction relating to MGIMS in foreign currency the registration granted under FCRA in the name of KHS alone and the transaction of MGIMS are not required to report separately, the ownership and title of the land on which MGIMS is functioning also in the name of KHS - It is opined that the above documentary evidences relied upon by the Appellant do not detract MGIMS from the fact that it is MGIMS, which is affiliated with the State Universities and monitored, controlled and regulated by the Medical Council of India. The role of the Appellant society is merely as the caretaker of the said medical institute, which is responsible for its management and administration as per the agreements entered by the Appellant Society with the Central Governments and State Government of Maharashtra. Thus, the core function of providing the medical institution is carried out by MGIMS, and not by the Appellant Society. This adequately proves its separate and independent existence as distinct entity from the Appellant Society. Since, the Appellant Society, does not provide the said Medical education, the question raised above is not proper and correct, and hence not answered - other issues not maintainable in terms of the Clause (a) of section 95 of the CGST Act, 2017, as the transaction with respect to which the Appellant has asked the question, is not pertaining to the Appellant.
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