TMI Blog2022 (6) TMI 253X X X X Extracts X X X X X X X X Extracts X X X X ..... d the functions discharged by them under Article 243W read with schedule 12 to the Constitution of India. Therefore these services do not qualify for exemption under Notification No. 12/2017. Vehicle insurance policies procured by the applicant for the vehicles owned by the board qualify for exemption if they are directly used to provide services under Schedule XII of the Constitution. However if they are used for transportation of employees/board members/other persons they will not have direct relationship to functions discharged under Article 243W and therefore will not qualify for exemption under Notification No. 12/2017. - A.R.Com/31/2021 TSAAR Order No.28/2022 - - - Dated:- 3-6-2022 - SRI B. RAGHU KIRAN, IRS, AND SRI S.V. KASI V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance to the employees, pensioners and their family members and Vehicle insurance Policy taken to provide Insurance to the vehicles owned by the Board. In their opinion they are exempt from paying GST in view of the Entry No. 3 of the Notification Number 12/2017 - Central Tax (Rate), dt 28th June, 2017, wherein it is provided that Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under arti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. 10. Slum improvement and up gradation. 11. Urban poverty alleviation. 12. Provision of urban amenities and facilities such as parks gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that the expression relating to means to bring into relation or establish a relation. It was further clarified that there should be a direct and immediate link with a covenant and that there cannot be any independent existence outside such covenant. By his own admission, the applicant is procuring medical insurance services to their employees and their family members. Thus there is no direct relation between the insurance services procured by the applicant and the functions discharged by them under Article 243W read with schedule 12 to the Constitution of India. Therefore these services do not qualify for exemption under Notification No. 12/2017. Vehicle insurance policies procured by the applicant for the vehicles owned by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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