TMI Blog2019 (9) TMI 1100X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry 3 of the Eleventh Schedule of the Constitution includes minor irrigation, water management and watershed development. The Applicant is, therefore, providing pure service to the State Government in relation to a project that involves functions listed under Entry 3 of the Eleventh Schedule. The Applicant s service to the Government of Tamilnadu is, therefore, eligible for exemption under Sl.No. 3 of the Exemption notification. Entry 13 of the Eleventh Schedule lists roads, culverts, bridges, ferries, waterways, and other means of communication. But Art 243M (2) states that the Part of the Constitution containing provisions on Panchayats, including Art 243G, does not apply to Mizoram. However, Entry 4 of the Twelfth Schedule and Entr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1 The Applicant has entered into contracts with the Government of Tamilnadu and the Government of Mizoram for providing services as a Financial Management Specialist and Institutional Development Specialist, respectively. He seeks a ruling on whether exemption in terms of Sl.No. 3 of Notification No 9/2017-lntegrated Tax (Rate) dated 28.06.2017, as amended from time to time (hereinafter referred to as the Exemption Notification ), is available on such services. 1.2 The supplier is located in West Bengal, and the place of supply is in another State. The supplies on which the advance ruling is sought are, therefore, inter-state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is part of the Road Sector Modernization Plan (hereinafter RSMP), which carries forward and deepens various institutional development initiatives in the road sector. The Applicant, as Institutional Development Specialist, handles implementation of the RSMP. 2.3 The Applicant argues that he is supplying services to the State Governments that involve no supply of goods. The services are in relation to such functions as irrigation, water management and watershed development in Tamilnadu, and development of roads and bridges in Mizoram. These are functions listed under the Eleventh and Twelfth Schedules of the Constitution. The services he supplies are, therefore, eligible for exemption under Sl No. 3 of the Exemption Notification. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Municipality under the Constitution. 3.3 The example of ambulance service provided by a PSP also makes it clear that the service provider or the recipient need not be a Panchayat or a Municipality. While examining whether the ambulance service that the PSP provides is eligible for exemption under Sl No. 3 of the Exemption Notification, the Circular does not venture into who the service provider or the recipient is. It focuses on the nature of the service and whether it is an activity relatable to a function listed under the Eleventh or the Twelfth Schedule under Art 243G or 243 W of the Constitution. The phrase in relation to any function , therefore, refers not to who the service provider is or what activities the recipient of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the enactments referred to above. 3.5 In light of the above discussion applicability of the provisions under Sl No. 3 of the Exemption Notification should be examined. 3.6 It appears from the copies of the contracts that the State Governments have directly contracted for the Applicant s service. 3.7 In terms of the scope of work under clause 5 of Appendix 2 to the contract with the Government of Tamilnadu the Applicant is required to support the Finance Officer of the Project Management Unit (PMU) during the project start-up to set up the accounts and manage the finances to meet the requirements of ADB. He shall also train the PMIJ staff on ADB procedures and reporting requirements, assist PMIJ in managing the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry 3 of the Eleventh Schedule of the Constitution includes minor irrigation, water management and watershed development. The Applicant is, therefore, providing pure service to the State Government in relation to a project that involves functions listed under Entry 3 of the Eleventh Schedule. The Applicant s service to the Government of Tamilnadu is, therefore, eligible for exemption under Sl.No. 3 of the Exemption notification. 3.12 Annex A to the contract with the Government of Mizoram provides a brief outline of the project and the scope of the Applicant s service. PWD is implementing the project for improvement and construction of State highways. RSMP is part of the project. The Applicant is required to assist PWD to develop, fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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