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2019 (6) TMI 1483 - APPELLATE AUTHORITY FOR ADVANCE RULING GUJARATGovernmental Authority or not - National Dairy Development Board - renting of immovable property service provided by NDDB to an educational institute, Anandalaya Educational Society - exempt under Sr. 4 of Notification No. 12/2017-Central Tax (Rate) or not - challenge to AAR decision. HELD THAT:- The said Sr. 4 of Notification No. 12/2017-Central Tax (Rate) provides exemption to services by governmental authority by way of any activity in relation to any function entrusted to a municipality under article 243W of the Constitution - The activity of ‘Renting of Immovable Property’ is not a function entrusted to a municipality under article 243W of the Constitution. Therefore, services by NDDB by way of ‘Renting of Immovable Property” cannot be said to be service in relation to any function entrusted to a municipality under article 243W of the Constitution. The phrase ‘in relation to any function’ refers not to what activities the recipient of the service is engaged in, but to what service the supplier is providing. In order to be covered under Sr. 4 of Notification No. 12/2017-Central Tax (Rate), the service by a ‘governmental authority’ itself should relate to an activity listed under Article 243W read with Twelfth Schedule of the Constitution. ‘Renting of Immovable Property’ is not covered under Article 243W read with Twelfth Schedule of Constitution. Thus, the exemption provided vide Sr. 4 of Notification No. 12/2017-Central Tax (Rate) is not admissible to appellant for providing service of ‘Renting of Immovable Property’ to ‘Anandalya Educational Society’ - decision of AAR upheld.
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