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2020 (3) TMI 296 - AAR - GSTAdmissibility of Advance Ruling application - Classification of services - services provided by Padmavathi Hospitality & Facilities Management Services (PHFMS) to DME - whether classifiable as a function entrusted to a Panchayat or a Municipality under the constitution? - availability of exemption under Sl.No.3 of Notification 12/2017 Central Tax dated 28.06.2017 read along with amendment dated 25.01.2018 - Services provided by PHFMS to DME including institutions of Government Hospitals and colleges - levy of GST - Rate of GST - Pure services or Composite Supplies? HELD THAT:- It is seen from the writ petition filed by the applicant that the applicant has submitted before the Hon’ble High Court that KRYSTAL, a bidder to the said tender has submitted their bid by stating GST as “Zero”and emerged as the successful bidder in respect of Zone 1 to Zone 4 and that the applicant would have been the successful bidder after including GST and that KRYSTAL had taken a calculated risk in submitting their bid without GST. The applicant had also made a representation to TNMSCL dt 11.7.2019 stating that price quoted by KRYSTAL without GST is to be disqualified as GST is applicable to the services involved in the tender. To this, TNMSCL vide letter dt 14.8.2019 had replied that GST is not applicable as per Notification No 12/2017 dt 28.6.2017 and hence, KRYSTAL is the LI for Zone 1 to 4 as they had the lowest bid with zero GST. In the writ petition, the applicant has repeatedly stressed that KRYSTAL has made the successful bid only because they quoted zero GST whereas in reality GST is chargeable for the services covered in the tender. With GST added, the applicant would have been the lowest bidder for zone 1 to 4 and they would not have been asked to lower their bid for zone 5 without including GST. The applicant himself has stated in the writ petition and in the communication with TNMSCL that the applicability of GST is essential to be decided before the tender is finalized. The stand of the applicant that the issue of applicability of GST is not the issue in the writ petition is not correct. The decision of the Hon’ble High Court on the writ will be applicable on the GST authorities who are also the respondents in the writ. This Authority functions within the limitations prescribed under Section 97 and 98 of the GST Act 2017. In as much as the State/Center Jurisdiction authorities are respondents to the Petition before Hon’ble High Court and the subject matter revolves on the leviability of GST, we find that the application cannot be admitted as per Proviso to Section 98(2), of the CGST /TNGST ACT as the question raised is already pending in the Hon’ble Madras High Court. The application filed by M/s. Padmavathi Hospitality & Facilities Management Service is rejected under Proviso to Section 98(2).
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