TMI Blog2021 (1) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... Supply of services - In the applicant case, none of the work orders cited above fulfil any of the condition mentioned above, in as much the applicant s activity does not involve the sale of goods but it involves supply of services of live telecast, videography etc. by using their own instruments/equipment s viz. LED LCD Screen, Live Telecast equipment, Cameras, etc., at site for various events undertaken by them and after completion of the specific event, all the instruments/ equipment, which are deployed at site, are taken back by them and use for other event. The applicant during the course of supply might also transfer some goods/ undertake the construction activity, for which he recovers consideration for the same as hiring charges from them. Thus, said services are to be construed as supply of services/ goods/ works contract depending upon the nature of contract entered by them or Work Order received by them. Thus, the services provided by the applicant would not fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017. Whether or not, the Service related to collection of Hire Charges for temporary transfer of right to u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 97 of CGST Act, 2017 and Section 97 of the GGST Act, 2017 in FORM GST ARA-01 discharging the fee of ₹ 5,000/- each under the CGST Act and the SGST Act. 2. The applicant submitted that they are engaged in supply of goods such as Temporary live videography with LED LCD Screen, Live Telecast equipment, Cameras, etc. on hire basis to Central Govt., State Govt., Union Territory, Local Authority, Village Panchayat, who undertake activities in relation to any function entrusted under Article-243G of the Constitution. 3. The applicant further submitted that Central Govt., State Govt., Union Territory, Local Authority, Village Panchayat, place orders to them for providing/supplying Temporary live videography with LED LCD Screen, Live Telecast equipment, Cameras, etc.. They have enclosed specimen Work Orders viz. (a) Work Order No. AB/TC/1082 dated 26.04.2017 issued by Office of the Executive Engineer, Baroda Electrical Division, R B Department, Vadodara and (b) Work Order No. Duda/Vasi dated 28.08.2018 issued by the Collector, Bharuch. 4. The applicant submitted that the illustrative supply of services which constitute hire charges for a consideration, inter-alia, inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (f) of the Schedule II to the Central Goods and Service Tax Act, 2017? (ii) Whether or not, the Service related to collection of Hire Charges for temporary transfer of right to use goods from Central Govt., State Govt. or Union Territory or Local Authority or a Government Authority by way of any activity in relation to any Function entrusted to a Panchayat under Article 243-G of the Constitution or in relation to any function entrusted to a Municipality under Article 243-W of the Constitution are covered and exempted under the scope of Sr. No. 3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017? Statement containing the applicant s interpretation of law and/or facts, as the case may be, in respect of aforesaid question(s): 9. The applicant, vide their letter dated 23.01.2019, submitted that as per clause No. 5(f) of the Schedule-II to the CGST Act, 2017, transfer of the right to use any goods, for any purpose (whether or not for a specified period), for cash, deferred payment or other valuable consideration, shall be treated as Supply of services . The services supplied by the applicant, being in the nature of transfer of the right to use any g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de Mahostav , Poshan Abhiyan Programme at Public Entrance Parking , Sujlam Suflam Jal Abhiyan , Divyang Shay Vitran Camp, VishvaAdivashi Divas , National School Child Health Programme , National Tribal Art Festival 2019 , Gujarat Gaurav Din , International Yoga Day or such other kind of Cultural Programme. The Applicant has submitted various work order issued by the State Government for the different programmes/events on different time, which is annexed herewith and marked as ANNEXURE A collectively. [ii] The Applicant have provided pure services to the State Government and its bodies and never provided services other than the Government. The Applicant application is in respect of classification of services and benefit of the notification No. 12/2017- CGST (Rate) which is to be decided keeping in mind the facts and evidence produced herein. [iii] The work order issued by the State Government clearly provides that the scope of their work is only supply of services and no goods are supplied to the state government. The Applicant have already submitted the scope of their services by its submission dated 23.01.2019 but as a matter of repetition, reiterate as u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e activity is nothing but Pure Service as defined under sub-clause (5) of Schedule II of CGST Act, 2017 and, therefore, the applicant satisfies one of the criteria of Sr. No. 3 of Notification no. 12/2017- Central Tax (Rate) dated 28.06.2017. [vii] Now, another aspect of the matter is whether the applicant is eligible for the Sr. No. 3 of the Notification No.12/2017- Central Tax or not. For proper appreciation of the case, Sr. No. 3 of the said notification is reproduced as below: Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (percent) Condition 3 Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243 G of the Constitution or in relation to any function entrusted to a Municipality under article 243W o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the social welfare, including welfare of the handicapped and mentally retarded. These activities are also covered under sub-clause (9) of Schedule XII, which provides safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded. Another event, which was handled by the applicant was Visva Adivashi Divas- APMC , however, this activity also covers under the safeguarding the interest of weaker section of society, which falls under both the schedules. Similarly, various other events like International Yoga Day, which would fall under the cultural and other sub-clauses of both the schedules. The applicant further submitted that all the work orders issued to the applicant squarely fall under Schedule XI and XII respectively, which can be verified from the work order itself and, therefore, the eligibility of the Notification No.12/2017- Central Tax dated 28.6.2017 is not in dispute. [xiii] That the Collector Bharuch also issued an order dated 28.08.2018, whereby it is specifically mentioned that in view of the Sr. No. 3 of the Notification, no GST is payable and, therefore, the payment was made to the applicant without deducting GST amou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Order 1 21.04.2018 Turnkey work of design, supply, installation, testing and commissioning of Laser Show with HD Projection on Aqua Screen, Sound System, Light Effects, Pyro Colour Flame including related civil, mechanical structure and electrical work at Mataria Lake Show date 29 th and 30 th April, 2018 2650000 Jilla Shaheri Vikas Agency (DUDA), New Collector Office, Bharuch. 2 20.06.2018 Providing Temporary LED Screen, Camera on occasion of World Yoga Day by Hon ble Minister at Central Vista Garden, Dist.- Gandhinagar, on 21.06.2018 590700 Office of the Executive Engineer, Ahmedabad Electrical Division No.2, Ahmedabad 3 24.04.2018 Providing Temporary LED Screen with Videography, for Yuva Sammelan main programme for State level Celebration of Gujarat Gaurav Din (1 st May, 2018) by Hon ble CM at Hostel Ground, Bharuch 905961 Office of the Executive Engineer, Baro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry Live Videography with LED Screen, for Poshan Abhiyaan Programme by Hon ble CM at Dahod on 23.01.2020 269085 Office of the Dy. Executive Engineer, Baroda Electric Division, R B Department, Vadodara 11 16.09.2020 Providing Temporary LED Screen with Live Videography for celebration of Namami Devi NarmadeMahotsava at Tal.- Dist. ChhotaUdepur 219974 Office of the Dy. Executive Engineer, Baroda Electric Division, R B Department, Vadodara 12 29.05.2018 Providing Temporary Live Videography with LED LCD Screen, for SujalamSuflam Jal AbhiyanSamapanSamaroh 2018 at Karadi, Tal- Jambusar, Dist.-Bharuch on 31.05.2018 494591 Office of the Executive Engineer, Baroda Electric Division, R B Department, Vadodara 13 16.05.2018 Providing Temporary Live Videography with LED Screen, for programme of Hon ble CM of SujalamSuflam Jal Abhiyan at Chekala, Dediyapa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exempted under the scope of Sr. No. 3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017? 18. Now, we take up the first issue for ruling, as to whether services provided by the applicant would fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017. 18.1 As per clause 5 (f) of the Schedule-II to the CGST Act, 2017, transfer of the right to use any goods, for any purpose (whether or not for a specified period), for cash, deferred payment or other valuable consideration , shall be treated as Supply of services . 19. In terms of sub-clause (d) of clause (29A) of Article 366 of the Constitution of India, the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration is deemed to be a sale of those goods by the person making the transfer, delivery or supply and a purchase of those goods by the person to whom such transfer, delivery or supply is made. Here, it is essential to determine whether, in terms of the contract, there is a transfer of the right to use the goods. To determine whether a transaction involves transf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticle 243-W of the Constitution are covered and exempted under the scope of Sr. No. 3 of the Notification No.12/2017Central Tax (Rate) dated 28.06.2017? 23. For better appreciation of the issue, Entry at Sr. No. 3 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, is reproduced herein below: Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (percent) Condition 3 Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243 G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 23.1 Thus, three conditions required to be satisfied for a service to be covered under subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gujarat GST, Act, 2017, Government means the State Government. (iii) local authority means (a) a Panchayat as defined in clause (d) of article 243 of the Constitution; (b) a Municipality as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution; (iv) As per clause(zf) of paragraph-2 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017, governmental authority has the same meaning as assigned to it in the explanation to clause (16) of section 2 of the Integrated Goods and Services Act, 2017 (13 of 2017). Clause (16) of section 2 of the Integrated Goods and Serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational education. 19. Adult and non-formal education. 20. Libraries. 21. Cultural activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the service recipients. It is not possible to foresee the nature of all these agreements at present. Further, there could also be modifications/ amendments in the existing agreements and the nature of service could be subsequently altered. Therefore, the reply to the query raised by the applicant cannot be answered in plain no or yes . Therefore, we hold that the nature of these agreements and the services provided by the applicant would determine whether the third condition as discussed above has been met or otherwise. We hold that applicant shall be eligible for the exemption under the Notification No.12/2017-State Tax (Rate) dated 28.06.2017 only if all the conditions as specified at para 23.1 supra are met in respect of supply of such services. Therefore, the exemption sought by the applicant will depend upon the nature of services provided by them in terms of specific contracts entered by them with respective service recipients. 25. In view of the above facts, we come to the conclusion that we do not find sufficient evidence to establish conclusively that all such conditions have been satisfied in respect of services provided by the applicant. 26. In light of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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