Home Case Index All Cases GST GST + AAAR GST - 2021 (9) TMI AAAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (9) TMI 1291 - AAAR - GSTClassification of services - pure services or not - solid waste management service provided by the applicant to Notified Area Authority, Vapi - exemption under N/N. 12/2017- Central Tax (Rate) dated 28.06.2017 - HELD THAT:- The NAA, Vapi is neither a Municipality, nor a Municipal Committee, nor a Zilla Parishad, nor a District Board. The appellant has also not submitted any evidence so that the NAA, Vapi can be termed as ‘any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund’. The submission of the appellant that the NAA, Vapi is a wing of municipal corporation, which is basically a local body established by the State Government to function as a self-government under Part-IX of the Constitution of India, is without any basis and not supported by any evidence - The NAA, Vapi also does not fall under any of the sub-clauses (d) to (g) of clause (69) of section 2 of the GST Acts. There are no merit in the submission of the appellant that the NAA, Vapi, like any other local body, provides municipal services in the industrial area of GIDC, Vapi, therefore, the NAA, Vapi is a local authority for the simple reason that the definition of the “local authority” under section 2(69) of the GST Acts do not provide so. The said definition do not provide that any authority providing municipal services can be termed as “local authority”. The definition of “local authority” under section 2(69) of the GST Acts is an exhaustive definition inasmuch as it uses the word ‘means’ and not ‘includes’. Therefore, the scope of the definition cannot be expanded. As the NAA, Vapi do not fall under any of the sub-clauses of the definition of “local authority”, as defined in clause (69) of section 2 of the GST Acts, the same cannot be considered as “local authority”. It is apparent from the composition of the Board of Management prescribed under Rule 3 of Gujarat Industrial Development (Notified Area) Rules, 2007, that the Government does not have 90 per cent, or more participation by way of control on the NAA, Vapi. Further, neither the aforesaid Rules provide anything regarding Government’s participation by way of equity in the Notified Area Authority, nor the appellant has submitted anything to this effect - the NAA, Vapi cannot be considered as “Governmental Authority”. The activities being carried out by the appellant viz. solid waste management service provided to the NAA, Vapi under the agreement, is not covered under Sr. No. 3 of Notification No. 12/2017- Central Tax (Rate), as amended, and Notification No. 12/2017-State Tax (Rate), as amended.
|