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2021 (8) TMI 783 - AAR - GSTClassification of services - composite supply of work contract service - development and construction of sports complex at Maninagar, Ahmedabad for the Ahmedabad Urban Development Authority - merit classification at Sr. No. 3(vi)(a) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 or otherwise? - HELD THAT:- The subject contract is for the construction of immovable property wherein transfer of property in goods is involved in the execution of subject contract. The subject supply is a composite supply of works contract service. The service recipient is AUDA. Its fund have not been notified by State Government Acts or Treasury Rules as local/municipal funds. There are no merit to term AUDA as ‘local authority’ as per section 2(69) (c) CGST Act - AUDA is set up vide Section 22 of Gujarat Town Planning and Urban Development Act,1976 and entrusted, inter alia, with function of development plans and Town planning schemes, as per Article 243 W of our Constitution. We hold that AUDA is a Government Authority. The commercial uses of an already existing Sports complex at Bopal location as detailed in previous pages. We note the chargeable bookings and their rates, the non refundable nature of bookings too. With the plain reading of the inclusive definition of the word ‘business’ in CGST Act as reproduced at paragraph 19.1 with the nature of commercial activities in which AUDA is involved as evidenced with the above illustration, with nothing to dissuade us from what is a glaring and clear illustration of activity of AUDA w.r.t. a sports facility already existing, We are of the strong opinion that subject proposed Sports Complex is not predominantly meant for use other than for commerce, industry, or any other business or profession - The Wording in a statute for ‘business’ and at entry 3(vi)(a) of said Notification, when clear, plain and unambiguous and only one meaning can be inferred, we are bound to give effect to the said meaning.. We give due Regard to the clear meaning of words and matter should be governed wholly by the language of the notification. The explanation to said entry of the Notification wherein the term ‘business’ shall not include any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities and does not cover Government Authority. We cannot allow any scope for intendment. Thus, the subject Supply does not merit to be entertained at subject Serial Number 3(vi)(a) of said NT (as amended from time to time).
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