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TMI Blog2020 (7) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... poses of this Advance Ruling, a reference to such a similar provision under the CGST or AP GST Act would be mentioned as being under the GST Act. 3. Brief Facts of the case: M/s Sri Satya Sai Water Supply Project Board, Office of Executive Engineer (R.W.S), (hereinafter referred to as the Applicant) is a society registered under the Societies Registration Act, 1997, and having its registered office at Office of the Executive Engineer (RWS) Panchayat Raj Department, Z.P. Compound, Anantapur. The Applicant was incorporated with the objective of undertaking drinking water supply projects in Anantapur District, Andhra Pradesh. Prior to the Applicant being constituted, 'Sri Satya Sai Trust', a public charitable trust in Anantapur, under took the drinking water supply project in the year 1995 to provide drinking water facilities to around 731 villages. By January 1998, the project released water to around 630 villages, which included 273 individual schemes. Since the individual schemes had to be monitored by Gram Panchayat, all the 273 individual schemes were proposed to be handed over to the Gram Panchayat. In respect of operation and maintenance of 19 comprehensive protected water s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peration and maintenance of the plant, as there is no supply of material during the process. It is submitted that under the Finance Act, 1994, in the pre-negative list regime, the activity of providing operation and maintenance services by the contractor to the applicant were chargeable to service tax, and was duly remitted by the contractor. Pursuant to the introduction of the negative list of service tax, the Applicant was of the view that the service is not chargeable to tax in light of the exemption provided under Entry 12 under the Mega Exemption Notification No.25/2012, dt.20.06.2012, which is as under: "12. Services provided to the Government, a local authority or a governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration of- (e) pipeline, conduit or plant for (i) water supply (ii) water treatment, or (iii) sewerage treatment or disposal;" The Applicant was of the considered view that it qualifies as a 'governmental authority' as (i) it was constituted by way of a Government Order, (ii) the majority of its Executive members consists of ex-officio officers and employees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 243C of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil The terms 'Governmental authority' has been defined in the Explanation to Section 2(16) of the IGST Act as under: "Explanation - For the purposes of this clause, the expression "governmental authority" means an authority or aboard or any other body: (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243W of the Constitution," Article 243W of the Constitution reads as under: Subject to the provisions of this constitution, the legislature of a state may by law endow: a) The Municipalities with such powers and authority as may be necessary to enable them to function as institutions of self - Government and such law may contain provisions for the devolution of powers and responsibilities upon municipalities, subject to such conditions as may be specified therein, with respect to (i) The preparation of plans for economic development and social justice; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with ninety per cent or more participation by way of equity or control, to carry out any function entrusted to a panchayat under article 243G or to a municipality under article 243W of the Constitution." Now we examine whether the applicant is qualified by the above conditionalities. 1) Whether the applicant is set up by an Act of Parliament or a State Legislature? The applicant does not fall under this category 2) Whether it is established by any Government? The applicant is constituted by the Government i.e., the State of Andhra Pradesh under G.O. Ms No. 344 dated: 16.09.1997. Hence is qualified by this condition. Whether the applicant possesses 90% or more participation by the Government by way of equity or control. The Board of the applicant i.e., "Sri Satya Sai Water Supply Project Board" consists of 9 Members, out of which 7 are officers /Employees of the Government of Andhra Pradesh that qualifies for 77% of Government control falling short of the designated 90% as required by the Act. Even the cost of the operation and maintenance of the water supply scheme is c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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