TMI Blog2021 (10) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... O for the use as the Ambulance and they are registered as tourist vehicles. It is also observed that, in its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarified that the service tax exemption at Sr. No. 25 (a) of Notification No. 25/2012 dated 20/06/2012 (ST Notification) has been substantially, continued under GST vide Sr No. 3 and 3A of the Exemption Notification. Sr. No. 25(a) of the ST notification under the erstwhile service tax laws, exempted services provided to the Government, a local authority or a governmental authority by way of water supply, public health, sanitation, conservancy, solid waste management or slum improvement and up-gradation. The said supply does not satisfy the provisions of Entry No 3 of Notification no. 12/2017-C.T. (Rate) dated 28th June, 2017 as amended and therefore cannot be treated as exempted. Therefore the same is liable to tax under the Notification No. 11/2017-C.T. (Rate) dated 28th June 2017, as amended. - GST-ARA-55/2020-21/B-82 - - - Dated:- 25-10-2021 - SHRI. RAJIV MAGOO, AND SHRI. T. R. RAMNANI, MEMBER PROCEEDINGS (Under Section 98 of the Central Goods and Services Tax Act, 2017 and the Ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces (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 243G of the constitution or in relation to any function entrusted to a Municipality under article 243W of the constitution . 2.4.2 Further, supplies of vehicles for carrying COVID patients for medical treatments would fall under entry no. 6 of twelfth schedule, Article 243W of the constitution which is reproduced as Public health, sanitation conservancy and solid waste management . Thus since this is pure service which is in relation to public health, it would be exempted under GST law. 2.5 The applicant is treating supply of vehicles for carrying COVID patients for medical treatment as taxable service, and charged tax on commercial invoices as per Notification No. 11/2017-Central Tax (Rate) dated 28th June, 2017 as amended, if any. 03. CONTENTION - AS PER THE CONCERNED OFFICER: Officer Submission dated 01.10.2021:- 3.1 Applicant has produced : Letter of Int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Alternative Submission:- 3.7 If the ARA authority considers that the supply is from the applicant to BMC, instead of the Federation of Tourist Taxi operators to BMC then the alternative submissions are as under:- 3.8 Supply of Vehicles are taxable activities under GST Act 2017, vide Notification No 11/2017-C.T.(R) dt 28.06.2017, as amended vide Notification No 20/2017-C.T.(R) dt 22-08-2017. 3.9 As per the Ingredient of Agreement/Letter of Intent, the supply of Innova vehicles to BMC is not covered under Pure Services as is seen from the ingredients of the impugned LOI. The LOI envisages supply of Vehicle - Innova or equivalent, to be provided in two shifts with drivers who will be provided expenses and insurance, for a rent of ₹ 1,20,000/- Plus GST as applicable. Supply to include Fuel expenses also. Further, Toll charges, Parking charges, Driver allowance and Night allowance also to be provided. 3.10.1 Thus as per the LOI, it seems that, the applicant has provided mix supply of Services to BMC. The entry, based on which the exemption is claimed, i.e. entry no.3 of Notification 12/2017 CT(R) dated 28.06.2017 is applicable to.- All Pure Services; Prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blic health' is, Sanitation, Conservancy and Solid Waste Management. The word Public Health world would therefore take colour from these words. As sanitation, Conservancy and Sold Waste Management are related to waste and it's disposal, the word 'public Health' would also take colour from these words and would be limited to Public Health related to waste and disposal only. 3.15 In view of the above fact, the impugned supply is not covered under the notification for pure services, it is liable to tax under GST @ 18% + compensation cess. 3.16 The BMC has also issued a circular regarding the rendering of services of vehicles, which specifically states that the hiring of vehicles is not covered under the pure services, it is not used for the services rendered the activities entrusted to a Municipality under Article 243W of the constitution. 3.17 Further, the supply of aforesaid vehicles are not covered under the definition of ambulance. It is only car, not a single change has been done in the Innova, which can say that, it is ambulance. It is also pointed out that vehicles are not registered with RTO for use as AMBULANCE; hence the same are not liable for gran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilization certificate from user department. Those sheets and Utilization certificate from the user department are not produced before us by the applicant and therefore, the view taken by the jurisdictional officer that, the applicant supplied services to the federation and the federation in turn supplied to the Municipal Corporation gains strength. 5.4 The applicant has also submitted a copy of a 'SERVICE PURCHASE ORDER' No.4800539721 dated 25.06.2020, issued by the MCGM to the applicant, wherein under the head Material/Description, Adv for ambulance like lnnova covid 19 is mentioned. 5.5 The jurisdictional officer, in his submissions has referred to a sample Tax invoice bearing No. 577 dated 01.08.2020 wherein it is mentioned that charges are levied for carrying Covid -19 suspected patients and details as per duty slip and annexure are attached and from the same it is seen that the applicant has also charged GST @12%. However, said attachment and annexure have not been produced before us. 5.6.1 The subsequent issue raised by the jurisdictional officer is that, in the subject case, there is a mixed supply of services to MCGM by the applicant. It appears that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he applicant has not submitted that they have provided ambulance service for the covid patients. Neither have they submitted anything on record to show that the Innova vehicles supplied by them have been converted into ambulances or registered as such, nor have they submitted proof of having transported only covid 19 patients for medical treatment. Further, the vehicles are not registered with RTO for the use as the Ambulance and they are registered as tourist vehicles. 5.8 Finally, we also observe that, in its Circular No. 51/25/2018-GST dated 31/07/2018 the Central Government clarified that the service tax exemption at Sr. No. 25 (a) of Notification No. 25/2012 dated 20/06/2012 (hereinafter referred to as the 'ST Notification') has been substantially, continued under GST vide Sr No. 3 and 3A of the Exemption Notification. Sr. No. 25(a) of the ST notification under the erstwhile service tax laws, exempted services provided to the Government, a local authority or a governmental authority by way of water supply, public health, sanitation, conservancy, solid waste management or slum improvement and up-gradation. The Circular further explains that in relation to the speci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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