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TMI Blog2019 (6) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... ling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed there under, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the application 1.1 The Orissa Construction Corporation Limited (hereinafter the recipient) has awarded the Applicant a contract for sectioning of Sunamuhin Drainage Channel (From Narsinghapatna Bridge to Brahmadeva Resort) and from pond near Harachandi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Engineer, Drainage Division, Puri, under his Memo No. 698 dated 16/05/2019, wherein it is stated that the work awarded to the Applicant is part of a project under the Department of Water Resources, Government of Odisha, for increasing the storage capacity of the channel to improve irrigation of the land. 2.3 The Applicant further submits a copy of the communication received from the Executive Engineer, Drainage Division, Puri, under his Memo No. 787 dated 04/06/2019, wherein it is stated cost of material transferred for completion of the dredging work is 5% of the total contract value. 2.4 The Applicant argues that the work undertaken is in relation to a function entrusted to a Panchayat under Article 243G of the Constitution of India. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edged materials and building of dykes etc., therefore, appears to be predominantly earthwork, as understood in common parlance. 4.2 It appears from the documents mentioned in para 2.1 that the recipient is a government entity, as defined under clause 2 (zfa) of the Exemption Notification. 4.3 It, therefore, appears that the Applicant is executing a works contract, more than 75% of which is earthwork. The recipient is a government entity and the work being executed is part of an irrigation project under the Department of Water Resources, Government of Odisha. It is, therefore taxable @ 5% with effect from 13/10/2017 in terms of Sl No. 3(vii) of the Rate Notification, as it stands post amendment under Notification No. 39/2017 - Integrated T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance service to the Government by a private service provider (PSP) that such service is a function of 'public health' entrusted to Municipalities under Art 243W of the Constitution, and, therefore, eligible for exemption under Sl No. 3A of the Exemption Notification. 4.6 The above Circular leaves no doubt that the phrase 'in relation to any function', as applied to Sl No. 3 or 3A above, makes no substantial difference between Sl No. 25(a) of the ST Notification and Sl No. 3 or 3A of the Exemption Notification. Under the previous service tax regime, the exemption was limited to certain functions specified in Sl No. 25(a) of the ST Notification, whereas, under the GST the ambit has been broadened to include any such functions that are perfor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State may, by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government...... subject to such conditions as may be specified therein, with respect to......the implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matters listed in the Eleventh Schedule," which contains the following twenty-nine functional items: 1 Agriculture including agricultural expansion 2 Land improvement, implementation of land reforms, land consolidation and soil conservation 3 Animal Husbandry, Dairying and poultry 4 Fisheries 5 Minor irrigation, water management and watershed development 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is, therefore, applicable to the Applicant's supply of the above works contract service. Based on the above discussion, we rule as under. RULING The recipient, namely Orissa Construction Corporation Ltd, is a government entity in terms of clause 2 (zfa) of Notification No 9/2017 - Integrated Tax (Rate) dated 28/06/2017. The Applicant s supply to Orissa Construction Corporation Ltd, as mentioned in para 4.1 above, was taxable @18% under SI No. 3(vii) of Notification No. 8/2017 - Integrated Tax (Rate) dated 28/06/2017 till 12/10/2017 The supply was taxable @ 5% under Sl 3(vii) of Notification No 8/2017 Integrated Tax (Rate) dated 28/06/2017, as amended by Notification No. 39/2017 Integrated Tax (Rate) dated 13/10/2017 with effect from 13 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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