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2018 (7) TMI 755 - AUTHORITY FOR ADVANCE RULING - ODISHAExemption towards supply of services provided to government under any training programme - Applicability of Entry 72 of Notification No.12/2017-Central Tax - supplies made by the Applicant to the Government and Government aided higher secondary schools in Odisha under the ICT Project - Whether the services provided by the Applicant to the Government and government aided higher secondary schools under the ICT Project, are covered under the scope of Entry No. 72 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017? Held that:- When the language of a taxing statute is clear, if the conditions of supply falls within the four corners of statute allowing exemption, it is to be exempted. If not, tax is to be levied. No exemption can be granted by inference or analogy. No supply can be taxed or excluded from tax on the basis of intention or scheme of the Act. The contract is for supply, installation, maintenance and commissioning of projection system, interactive white board, computer hardware, connected accessories, installation of soft ware and other allied accessories, site preparation, maintenance of equipment and provision of computer education services for 5 years in 3409 Govt, and Govt. aided high schools of Odisha under ICT@school project in the state of Odisha. The total contract value is ₹ 617,18,63,000/-. Thus, the contract is clearly for supply of goods and services including training. It is a composite supply having distinctly identifiable components with distinct value attributable to each of the components. No doubt, the applicant has provided computer training service as part of the contract, but the said service is not pre-dominant or principal supply. In fact the contracted supply has three distinct supply components out of which training is a small component. It is not a case of transfer of goods without consideration but rather a case of supply of goods on consideration payable in installments agreed between the contracting parties. Besides, as per para 1(c) of Schedule II of the OGST/CGST Act ,any transfer of title in goods under an agreement which stipulates that property in goods shall pass at a future date upon payment of full consideration as agreed, is a supply of goods and not a service. Expenditure borne by the Central Government, State Government or Union territory administration - Held that:- It is quite clear that as per the contract, payment for the work done is to be made by OKCL and not the state government, though the source of funding the expenditure is by the State Government. Recipient of the service OKCL is a body corporate which cannot be regarded as Government - The supply undertaken by the applicant is in the nature of composite supply, service provided or to be provided is not exclusively in the nature of training programme - Though the source of funding for the service is the state Government and Central Government, yet, as per the contract, the payment responsibility is vested on OKCL. Ruling:- The activities of the applicant by way of supply, of goods valid services under the ICT project are not covered under Entry 7.2 of the notification no.12/2017 dated 28.06.2017, to be entitled to the benefit of exemption from GST.
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