TMI Blog2019 (2) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... lled Chennai Metropolitan Water Supply and Sewerage Act, 1978 (Tamil Nadu Act 28 of 1978) with 100% contribution by way of Government (i.e. by way of takeover of Assets and Liabilities from Chennai Municipal Corporation and Tamil Nadu Water Supply and Drainage Board) and controlled by the Government by way of appointing Directors of the CMWSS Board, to cariy out the functions of supplying water for domestic, industrial and commercial purposes as well as Sanitation Conservancy by way of disposal of Sewer - The Twelfth Schedule or Article 243W of the Constitution list the functions of the municipality at SI No 5 as “Water Supply for domestic, industrial and commercial purposes “and at SI No 6 as “Public health, sanitation conservancy and solid waste management” - Thus, CMWSSB is a 'Governmental authority' as defined under 2(zf) of the Notification No. 12/2017-Central Tax (Rate) 28th June 2017. The activity of the Applicant envisaged by the three agreements furnished by the applicant is supply of 'Pure Services' to CMWSSB which is a 'Governmental Authority” relating to water supply for industrial use and sanitation conservancy which are covered under Twelfth Schedule of Article 243 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Treatment Reverse Osmosis(TTRO) Plant at Kodungaiyur Koyambedu, Chennai City Consultancy Services for preparation of Detailed Project Report for providing Smart Water Supply and Sewerage Services in T.Nagar, Chennai City, under Smart City Mission 2.2. The Applicant has stated that in the pre-GST regime and as per the Special Conditions of the agreement entered into by Applicant with CMWSSB, the Service Tax paid by the Applicant was reimbursed by CMWSSB up to Febraury '2017 and with the introduction of GST from 01.07.2017, the Applicant charged GST on the Invoices raised by it on CMWSSB. However, CMWSSB is of the view that Project Management Consultancy Services (PMC) rendered by the Applicant is exempted as per Sl.No.3 of Notification of 12/2017 CT(R) dated 28.06.2017, as the Project Management Consultancy (PMC) is within the ambit of Pure Services viz. is an activity in relation to any function entrusted to a Municipality under Article 243W of the Constitution, the function being Water Supply for domestic, industrial and commercial purposes. The CMWSSB denied to reimburse the GST component of the Invoice to the Applicant, even if they raise the same in the monthly i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant will provide supervision of the Construction Works including Design, Testing Quality Assurance, carry out 3rd party inspection of equipment and materials required for construction and commissioning, be responsible for Environmental and social management and sign-off on the expenditure by the project executing authority. As per the contract, the Applicant will be paid for all staff costs, Sub-consultants costs, printing, communications, travel, accommodation and all other costs incurred in carrying out the services. The payment will be on actual cost of deployment of man-power who are specified in the contract. It is seen from the invoices already raised that the Applicant is being paid for Consultancy Fee towards Project Management Consultancy (PMC) for setting up of 45MLD capacity Tertiary Treatment Reverse Osmosis (TTRO) Plant at Kodungaiyur and Koyambedu. 4.1 The Applicant has also entered into contract with CMWSSB for Consultancy Services for preparation of detailed project report for providing smart water supply and sewerage services in T Nagar under Smart City Mission. The project is to Design, Develop and improved Water Supply and Sewerage System in T-Nagar. The Appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 3 of Notification No. 12/2017 Central Tax (Rate) dated 28th June 2017 to the three contracts entered into by the Applicant with CMWSSB i.e. Project Management Consultancy services in connection with setting up of TTRO Plant at Kodungaiyur Koyambedu and for Consultancy Services for preparation of detailed project report for providing Smart Water Supply and Sewerage Services in T.Nagar. The Applicant has also stated that CMWSSB is of the view that PMC services rendered by them could be brought within the ambit of Pure Services , as it is an activity in relation to any function entrusted to a Municipality under Article 243W of the Constitution and not reimbursed the GST component of the invoice. The issue to be decided is whether the Applicant is rendering Pure Services' and whether CMWSSB is a 'Governmental authority' as defined in the Notification No. 12/2017. 6.1 The relevant extract of SI.No. 3 of Notification No. 12/2017-Central Tax (Rate) dated 28th June 2017 and the relevant definitions are extracted below for ease of reference: 3 Chapter 99 Pure services (excluding works contract service or other compo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al Tax (Rate) referred above. 6.2 In the case at hand, from the documents furnished by the Applicant, we find that CMWSSB is a Board constituted by an act of Tamil Nadu State Legislature called Chennai Metropolitan Water Supply and Sewerage Act, 1978 (Tamil Nadu Act 28 of 1978) with 100% contribution by way of Government (i.e. by way of takeover of Assets and Liabilities from Chennai Municipal Corporation and Tamil Nadu Water Supply and Drainage Board) and controlled by the Government by way of appointing Directors of the CMWSS Board, to cariy out the functions of supplying water for domestic, industrial and commercial purposes as well as Sanitation Conservancy by way of disposal of Sewer. The Twelfth Schedule or Article 243W of the Constitution list the functions of the municipality at SI No 5 as Water Supply for domestic, industrial and commercial purposes and at SI No 6 as Public health, sanitation conservancy and solid waste management . Thus it is clear that CMWSSB is a 'Governmental authority' as defined under 2(zf) of the Notification No. 12/2017-Central Tax (Rate) 28th June 2017. 6.3 On perusal of the agreements furnished by the Applicant, we find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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