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2019 (12) TMI 1455 - AAR - GSTExemption from GST - telecommunication service to GHMC- Hyderabad, Telangana - GST amounts are being remitted by the applicant to Government as per the notifications issued from time to time - exemption as per entry No. 3 of CGST Notification No. 12/2017-(R) dated 28th Jun 2017 opining that the telephone services are being used for performing functions under article 243W of Constitution - HELD THAT:- In terms of Sec. 2(69) of the CGST Act, the recipient of the service i.e. GHMC falls within the definition of ‘local authority’ and hence the services provided by the applicant are said to have been rendered to the local authority. The applicant have not produced any evidence by way of contract/agreement/other document during written/oral submissions suggesting that the services provided by them do not involve any supply of goods. In the absence of the same it cannot be held that the services provided by the applicant are “Pure Services”. In order to be eligible for exemption under entry No. 3 of the Not. No. 12/2017- CT (R), the service must be by way of any activity in relation to any of the aforesaid functions. It appears that the telephone services are basically used by the personnel of the GHMC in their offices and provision of the said services has no relation whatsoever to the above mentioned functions. Reliance can be placed in the case of Hon’ble Supreme Court in the case of COMMISSIONER OF CUSTOMS (IMPORT) , MUMBAI VERSUS M/S. DILIP KUMAR AND COMPANY & ORS. [2018 (7) TMI 1826 - SUPREME COURT] wherein it was held that “exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification”. - Applying the ratio of the above judgements to the present case, it can be concluded that telephone services provided by the applicant cannot be regarded as pure services and these cannot be held as the activities in relation to any of the functions entrusted under Article 243W of the Constitution on the strength of the words “in relation to”. In their application & enclosures also, the applicant has not adduced/provided any substantiation to show establish the category. The services provided by the applicant are not eligible for exemption as provided for under entry No. 3 of the Not. No. 12/2017-CT(R) dated 28.06.2017(as amended) - Since the services provided by the applicant are taxable services, the tax invoices issued by the applicant should indicate the amount of tax which shall form part of the price at which such supply is made as required under Sec. 33 of the CGST Act, 2017.
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