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2022 (5) TMI 403 - APPELLATE AUTHORITY FOR ADVANCE RULING, RAJASTHANExemption from GST - Pure Service - Providing Project Management Consultancy services - local authority / Governmental Authority or not - services provided to Rajasthan Urban Drinking Water Sewerage and Infrastructure Corporation (RUDSICO) - HELD THAT:- a statutory body, corporation or an authority created by the Parliament or a State Legislature is neither 'Government' nor a 'local authority'. Such statutory bodies, corporations or authorities are normally created by the Parliament or a State Legislature in exercise of the powers conferred under article 53 (3) (b) and article 154 (2) (b) of the Constitution respectively. Hon'ble supreme court in the case Agarwal Vs. Hindustan Steel AIR 1970 Supreme Court 1150 has held that, “the corporation which is Hindustan Steel Limited in this case is not a department of the Government nor are the servants of it holding posts under the State. It has its independent existence and by law relating to Corporations, it is distinct even from its members.” Such a statutory body, corporation or an authority as a judicial entity is separate from the State and cannot be regarded as the Central or a State Government and also does not fall in the definition of 'local authority'. Thus, regulatory bodies and other autonomous entities would not be regarded as the “government” for the purposes of the GST Acts. Holding of equity control of RUDSICO by Jaipur Development Authority and Rajasthan Housing Board cannot be treated as holding of equity control by government. Accordingly, we hold that RUDSICO is not a Governmental Authority.
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