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2020 (9) TMI 545 - AAR - GSTBenefit of exemption from GST - professional service in respect of maintenance of Accounts and allied items of work - applicant is of the view that service of maintenance of account provided to SSNNL, a Govt, of Gujarat undertaking is covered under Sr. No.3 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 - HELD THAT:- The Narmada Project implemented through a Company whose entire share capital is owned by Govt. of Gujarat viz. SSNNL is being implemented as part of the development and commercial activities of Govt. of Gujarat and to make available various benefits of development, irrigation, power generation and other attendant benefits to the people of Gujarat and other neighboring states - SSNNL, a company is engaged in the work of providing drinking water, generation of electricity and irrigation facility which is a function entrusted to a Panchayat under Article 243G and Municipalities under Article 243W of the Constitution. The words “in relation to” is defined in the Oxford Dictionary as to mean “in the context of” or “in connection with”. When two activities are directly linked to each other, then they are said to be in connection with or in the context of. The applicant has provided no evidence to establish that the activity of providing service of auditing, accounting, taxation to the SSNNL are provided in relation to the any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to the function entrusted to a Municipality under Article 243W of the Constitution - The applicant, himself, in his submission, has stated that they understand that pure service as prescribe in the said Notification is available in relation to an activity/ function entrusted to a Panchayat or a Municipality under Article 243 G and 243W of the Constitution respectively. They are not providing any technical services/any related services for constructing of Dam, Canal or any other irrigation network of the company; that Service of maintenance of Accounts provided by them is not related to main function of the Company like water providing activity and to prepare the structure of Dam, Canal and other irrigation network of the Company; they do not provide any services which are in relation to the functions prescribed in clause 243G and 243W of the Constitution of India; that Maintenance of Accounts service has no anywhere concern with functions prescribed under clause 243G and 243W of the Constitution of India. Thus, the service of auditing, accounting, taxation to the SSNNL is not covered under the Entry No. 3 of the Notification No. 12/2017-Central Tax (Rate), dated 28-6-2017.
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