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2022 (7) TMI 404 - AUTHORITY FOR ADVANCE RULING, TAMILNADUExemption from GST or not - contracts received from various city corporations and a municipality towards Solid waste management - contracts received from various city corporations and municipalities towards removal of legacy waste dumped at dump site through bio-mining process - applicability of Sl.No.3 of Notification 12/2017-CT.(Rate) dated 28.06.2017 - applicability of GST TDS for the exempted contracts - HELD THAT:- From the agreement, it is observed that the facility viz., BIO-CNG will be built, operated by the applicant and will be transferred to the GCC without any cost at the end of the agreed upon period. Thus it is seen that the work involved is a composite supply of goods and services as it involves transfer of facility built by the contractor which would include the Plant and machinery and support structures. Hence this supply of the applicant is not 'Pure services'. Therefore, it is found that the contract entered into for the conversion of wet waste into BIO-CNG does not satisfy the first criterion of being 'Pure services' and is found not eligible for exemption under SI.No.3 Notification 12/2017-C.T. (Rate) dated 28.06.2017(as amended). The Greater Chennai Corporation was formed vide G.O.Ms.No. 152, Dt.26.10.2015 which was earlier established as Chennai Corporation that originally was formed as Madras Municipal Corporation on the 29th September 1688. The service recipients are various Municipal Corporations which are all local authorities. As per Section 2 clause (69) sub- clause (b) of the CGST Act, 2017 'Municipality' as defined in clause (e) of article 243 P the Constitution is a local authority, hence the services are provided to 'Local Authority' and the criterion related to recipient is satisfied. Whether the activity is a function entrusted to a municipality under Article 243W of the Constitution? - HELD THAT:- On a cogent reading of SI.No. 6 of the Twelfth Schedule to the Constitution and Rule 15 of the Solid Waste Management Rules 2016, it is evident that it is the duty of the local authority to investigate, analyse the existing dumpsites for their potential bio-mining and bio-remediation and wherever feasible has to take actions to bio-mine or bio-remediate the sites under 'Solid Waste Management'. In the case at hand the function of bio-mining. Bio-remediation of the dump yard and maintenance of Micro composting center is entrusted to the applicant and therefore the final criterion is also satisfied. The contracts received from various city corporations and municipalities towards removal of legacy waste dumped at dump site through bio-mining process is "Pure services' rendered to a local authority and the activity is a function entrusted to a municipality under Article 243W of the Constitution. Thus the contracts are eligible for exemption from GST vide SI.No.3 of Notification 12/2017-CT. (Rate) dated 28.06.2017(as amended). Further the contracts entered into for maintenance of Micro-composting and labour contracts for collection of bulk and wet waste are also found to be 'Pure services' rendered to local authorities and are activities entrusted to a municipality under Article 243W of the Constitution. However the contract pertaining to Bio-CNG carried at the Central Asphaltic plant being supply of goods and services together does not qualify as 'Pure services' and hence it is found not to be eligible for exemption under SI.No.3 of Notification 12/2017-CT. (Rate) dated 28.06.2017(as amended).
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