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2020 (1) TMI 975 - AUTHORITY FOR ADVANCE RULING, PUNJABExemption under N/N. 12/2017 - Government Authority or not - parking lot services provided by the Contractor appointed by the Market Committee - Whether the parking lot services provided by the Contractor appointed by the Market Committee, which is a Government Authority is exempt under Notification No. 12/2017 as the parking lot activity is covered under Article 243 of the Constitution? HELD THAT:- The other functions of the State including welfare activity of State could not be construed as “sovereign” exercise of power. Hence, every governmental function need not be “sovereign”. State activities are multifarious. From the primal sovereign power, which exclusively inalienably could be exercised by the Sovereign alone, which is not subject to challenge in any civil court to all the welfare activities, which would be undertaken by any private person. In the present case, although the Punjab State Agricultural Marketing Board was established on 26th May, 1961 under the Punjab Agricultural Produce Markets Act; 1961, its function cannot be considered as sovereign functions and accordingly the parking fees collected by them through the applicant does not acquire the nature of statutory fee so as to be outside the scope of any tax. Thus, the parking fees collected by the applicant are not in nature of statutory fees - thus, the parking lot services provided by the Contractor appointed by the Market Committee, are not exempt under Notification No. 12/2017 as the Market Committee is not a Government Authority as per the definition provided in the clause 2(zf) of the notes appended to N/N. 12/2017. The parking services provided by the Contractor appointed by the Market Committee, not exempt under Notification No. 12/2017 as the Market Committee is not a Government Authority - Marketing committee (Mandi Board) does not qualify under the definition as provided in clause 2(zf) of the notes appended to N/N. 12/2017 - The activity / services of parking provided by the applicant falls under heading 9967 and attracts GST@ 18%.
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