TMI Blog2022 (5) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... conduct of examinations, including any entrance examination, to the students - these exams do not provide employment to the successful candidates, but make the successful candidates eligible for the posts of the jobs of teachers or lecturers. As all criteria are complied with and the State Examination Board being the educational institution in so far as it provides services by way of conduct of exams at Sr. No. 1 to 12 in the list given at para 26 above, it is observed that the appellant is eligible to avail the benefit of exemption under Sl. No. 66 (aa) of Notifications No. 12/2017 Central Tax (Rate) dated 28.06.2017 for exams at Sr. No. 1 to 1. Whether the appellant is eligible to claim exemption benefit under the Sl. No. 5 of the Notifications No. 12/2017 Central Tax (Rate) dated 28.06.2017 for exams given at Sr. No. 13 and 14? - HELD THAT:- In the instant case, the AAR stated that the activity of conducting examinations by the appellant squarely falls under Heading 9992 (which covers Education Services) and further held that State Examination Board can be considered as Governmental Authority - education can be considered as the act or process of imparting kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... November, 1966 to arrange and conduct examinations; that this Board was declared autonomous by a Notification No.1099/1081/N dated 26.10.1999 and 24.05.2000 of the Education Department in 1999 and has submitted a copy of the same; that the State Examination Board is registered under Societies Registration Act 1860. 5. The appellant sought ruling from the Gujarat Authority for Advance Ruling [ GAAR ] with respect to list of 23 exams on the following question Whether the applicant is eligible to claim exemption benefit under Sr.No.5 and Sr. No. 66(a) (aa) of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017? 6. The GAAR examined the issue and observed that out of the list of 23, the 7 exams conducted by the appellant[at Sr. No. 9 to 15 of the list of exams i.e. (i) Elementary Drawing Grade Exam, (ii) Intermediate Drawing Grade Exam, (iii) Primary Scholarship Exam, (iv) Secondary Scholarship Exam, (v) National Talent Search Exam Stage-1(NTSE), (vi) National Means cum Merit ScholarshipExams(NMMS-Exam) and (vii) Rashtriya Indian Military College, DehradunEntrance Exam(RIMC-Dehradun)],can be said to be pertaining to education including primary and secondary sch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Department of the Government of Gujarat, is an autonomous body, established for the sole purpose of conducting various types of examinations and cannot, be considered as a State Education Board as the functions of the State Examination Board are completely different from that of a State Education Board. It was further observed that in order to be eligible to avail the benefit of exemption available under the aforementioned Sr. No. 66 (a) and (aa), the primary criteria of being an Educational Institution as defined in para-2(y) of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 has to be fulfilled/satisfied, failing which, the appellant will not be considered eligible for availing the benefit of the said exemption. Since, the appellant does not get covered under the definition of Educational Institution thus rendering themselves ineligible for the benefit of exemption of GST available under Sr.No.66(a) and 66(aa) of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 as amended from time to time. 9. In view of the foregoing, the GAAR, vide Advance Ruling No. GUJ/GAAR/R/105/2020 dated 05.11.2020 , ruled as under: (i) The applicant is eligible to clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red as Governmental Authority in order to avail benefit under Entry No. 5 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. 14. The appellant submitted that the term in relation to have been interpreted by the Supreme Court in the case of CCE V/s Rajasthan State Chemical Works 1999(55) ELT 444 (SC) and Union of India V/s Ahmedabad Electricity Co. Ltd. 2003(158) ELT 3(SC), wherein it has been held that such words widen and expand the scope, meaning and content of expressions. Further, appellant submitted that Hon ble Supreme Court in case of M/s. Doypack Systems (P) Ltd. Vs UOI 1988 (36) ELT 201 SC held that, The expression in relation to (so also pertaining to ), is a very broad expression, which pre-supposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context. 15. Moreover, the activity carried out by the appellant i.e. conducting various examinations are in relation to the function entrusted to the panchayat under article 243G of the Constitution of India. As per article 243G of the Constitution, the lists of functions are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Examination (NBE). As per the said Circular, NBE is construed as Educational Institution in so far as it provides services by way of conduct of examinations, including any entrance examination, to the students. While referring this Circular, the appellant submitted that M/s State Examinations Board should also be given the same recognition of Educational Institution as is given to NBE. 20. In addition, the appellant also referred to Judgement of Hon. Gujarat High Court in case of M/s Educational Initiatives Pvt Ltd v. Union of India (Special Civil Application No. 16476 of 2021) dated 18th February, 2022 for clarifying examination as an essential component of education. The relevant para of the Judgement is reproduced below: 18. We are of the view that the word education cannot be given a natural meaning by restricting it to the actual imparting of education to the students but should be given a wider meaning which would take within its sweep all the matters relating to imparting and controlling education. Examination is an essential component of education as it is one of the major means to assess and evaluate the skills of a candidate and the knowledge, be it a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Tax (Rate) dated 28.06.2017. Detailed submissions on taxability for conducting various exams are made as under: 21.1 Category - 1: 21.1.1 This category includes the following two exams: (i) Teacher Eligibility Test 1 (TET-1) (ii) Teacher Eligibility Test 2 (TET-2) Hereinafter, these exams are referred to as TET . This examination is required for a person to be eligible for appointment as a teacher in primary school (i.e. in class I to VIII in a school). 21.1.2 Eligibility of a person to appear in TET: It is submitted that examination of TET -1 can be appeared by candidate who has completed 12thHigher Secondary (HSC) and Diploma in Elementary Education (D.El.Ed.). For examination of TET-2, a person should have completed Graduation and Bachelor of Education (B.Ed) or Diploma in Elementary Education (D.El.Ed.). 21.1.3 Statutory provision of TET for appointment as a teacher: TET exams are undertaken as per the provisions contained in the Right of Children to Free and Compulsory Education Act, 2009 (herein after referred to as the RTE Act ). Section 23 of the RTE Act decides the qualification for appointment of teacher, which is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ould pass the Teacher Eligibility Test (TET) as conducted by the appropriate Government in accordance with the Guidelines framed by NCTE. 21.1.6 Framing Syllabus and authorising State Examination Board for conducting TET: In exercise of the powers conferred by sub-section (1) of Section 23 of the RTE Act and in pursuance of the Guidelines by NCTE, the Education Department of Government of Gujarat has passed a resolution No. PRE-1111-711-K dated 27th April 2011 and framed the syllabus for TET and decided that TET shall be conducted by the State Examination Board, Gandhinagar. 21.1.7 On perusal of aforesaid details, the appellant submitted that the TET is a qualification recognised by the RTE Act. The State Examination Boardprovides services by way of conducting TET and issues Mark-sheet to the successful candidates. Thus, it is submitted that the State Examination Board, being an educational institution, is eligible to avail benefit of exemption as per entry 66 (aa) Notification No. 12/2017 Central Tax Rate dated 28th June 2017 21.2 Category - 2: 21.2.1 This category includes the following three exams: (i) Teacher Aptitude Test (TAT (Sec.)) (ii) Teac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... educational qualifications and age in accordance with the provisions of the Gujarat Secondary Education regulations, 1974; and (b) . 21.2.4 Qualifications of Teachers and Head Masters: The Education Department, Government of Gujarat has passed the Secondary Education Regulations, 1974 and laid down the qualifications of head masters and teachers. Relevant regulation No. 20 is as under: 20. Qualifications of Head Masters, Teachers and members of nonteaching staff in a registered school: (1) No person shall be appointed as a Head Master or a second Head unless he is trained graduate (B.T or B.Ed) or its equivalent as declared by the State Government, with post training teacher/ inspecting experience of not less than five years of which at least three years teaching experience must be in a secondary school. (2) . (3) No person shall be appointed as a teacher unless he- (a) has attained the age of eighteen years, and (b) possesses (i) a degree in any faculty of any university in India established by law, and (ii) a degree of Bachelor in Teaching or Bachelor in Education or any degree recognised by the Board as equivalent thereto, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... labus for HMAT and decided that HMAT shall be conducted by the State Examination Board, Gandhinagar. 21.2.7 On the basis of aforesaid details, the appellant submitted that the TAT / HMAT is a qualification recognised under the GSHSE Act. The State Examination Board provides services by way of conducting TAT / HMAT and also issues Marksheet to the successful candidates. Thus, it is submitted that the State Examination Board, being an educational institution, is eligible to avail benefit of exemption as per entry 66 (aa) Notification No. 12/2017 Central Tax Rate dated 28th June 2017. 21.3 Category - 3: 21.3.1 This category deals with exam relating to Head Teacher Aptitude Test (HTAT). This examination is required for a person to be eligible for appointment as Head-teacher in in Primary and Upper Primary school (class I to VIII in a school). 21.3.2 Eligibility of a person to appear in HTAT: It is submitted that examination of HTAT can be appeared by candidate who has completed Graduation and Bachelor of Education (B.Ed) or Diploma in Elementary Education (D.El.Ed.)with 5 years experience of teaching can appear in HTAT. 21.3.3 Statutory provision of HTAT fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Education Department, Government of Gujarat has passed the Resolution No. PRE/1111/2834/K dated 18th January 2012 and framed the syllabus for HTAT and decided that HTAT shall be conducted by the State Examination Board, Gandhinagar. 21.3.6 On the basis of aforesaid details, the appellant submitted that post of Headteacher is created based on norms and standards as decided under the RTE Act, the qualification of HTAT is recognized under the GPE Act. The State Examination Board provides services by way of conducting HTAT and also issues Mark-sheet to the successful candidates. Thus, it is submitted that the State Examination Board, being an educational institution, is eligible to avail benefit of exemption as per entry 66 (aa) Notification No. 12/2017 Central Tax Rate dated 28th June 2017. 21.4 Category - 4: 21.4.1 This category includes the following six exams: (i) Diploma in Pre School Education (DPSE) - 2 years course (Old name Pre-primary) (ii) Diploma in Elementary Education (D.El.Ed.) - 2 years course (Old name PTC) (iii) Art Teacher Diploma (ATD) (or Diploma in Arts Education) 2 years course (iv) Applied Arts - 5 years course (v) Drawing Paintin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... um; (f) .... (g) lay down standards in respect of examinations leading to teacher education qualifications, criteria for admission to such examinations and schemes of courses or training; (l) formulate schemes for various levels of teacher education and identify recognised institutions and set up new institutions for teacher development programmes; Section 12A of the NCTE Act gives power to NCTE to determine minimum standards of education of school teacher. This provision is reproduced as under: 12A. Power of Council to determine minimum standards of education of school teachers.- For the purpose of maintaining standards of education in schools, the Council may, by regulations, determine the qualifications of persons for being recruited as teachers in any preprimary, primary, upper primary, secondary, senior secondary or intermediate school or college, by whatever name called, established, run, aided or recognised by the Central Government or a State Government or a local or other authority: Provided that nothing in this section shall adversely affect the continuance of any person recruited in any pre-primary, primary, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 2 Elementary teacher education programme leading to Diploma in Elementary Education (D.El.Ed) [Formerly known as PTC] Appendix 2 11 Diploma in arts education (Visual Arts) programme leading to Diploma in Arts Education (Visual Arts) [This programme includes programme relating to Painting, Sculpture, Applied Arts As per Para 4.1 (a) in Appendix 11] Appendix 11 12 Diploma in arts education (performing arts) programme leading to Diploma in Arts Education (Performing Arts) Appendix 12 Various Appendix as per Resolution 9 of the said Regulations provides the details of Norms and Standards for various teacher education programmes such as Duration and Working Days; Intake, Eligibility, Admission Procedure and Fees; Curriculum (i.e. syllabus), Programme Implementation and Assessment; etc. 21.4.4 Authorising State Examination Board for conducting exams: Further, the Education Department, Government of Gujarat has passed the Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her Secondary School, Assistant Education Inspector in District Education Office, Assistant Education Inspector (Kelavani Nirikshak in District Panchayat); School Inspector, Block Resource Centres (BRCs), Cluster Resource Centres (CRCs), Urban Resource Centres(URCs) (in the Education Department); Forest guard (in the Forest Department), Jail Sipahi (in the Home Department), Clerk (in Paschim Gujarat Vij Co. Ltd. PGVCL), Stenographer (in Gujarat Industrial Development Corporation (GIDC)), Environment officer and Scientific officer (in Gujarat Pollution Control Board (GPCB)). 21.6.3 It is submitted that various Departmental exams are conducted by the State Examination Boardbased on basis of the Resolutions passed by the respective Department of the State Government. As per these Resolutions, no fees have been charged from any employees for three trials. Subsequently, fee amounting Rs. 200/- is charged from the candidates. 21.6.4 The appellant has referred section 7 of the CGST Act, which is reproduced below: Section 7. Scope of supply.- (1) For the purposes of this Act, the expression - supply includes- (a) all forms of supply of goods or services or both s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refully heard the authorised representative of the appellant - CA. Devam S. Sheth through video conferencing and further considered the written submission made in the appeal memorandum and the additional submission made on 17th March 2022 29th March 2022as well as Advance Ruling given by the GAAR and other materials available on record. 26. First, we have considered the list of different examinations (along with the eligibility to appear in the exam) conducted by the State Examination Board for which the appellant has filed the present appeal, which is summarised as under: Sr.No. Exams Eligibility 1. Teacher Eligibility Test-1 (TET-1) 12 th Higher Secondary (HSC) + D.El.Ed. 2. Teacher Eligibility Test-1 (TET-2) Graduate + B.Ed / D.El.Ed. 3. Teacher Aptitude Test (TAT (Sec.)) Graduate + B.Ed. 4. Teacher Aptitude Test (TAT (HS) Graduate + Post Graduate + B.Ed. 5. Head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nducting departmental examination (given at Sr. No. 15 in the list given at para 26 above) by the appellant is considered outside the scope of section 7 of the CGST Act and therefore, no tax is leviable on such activity? 28. The first issue needs to be decided is as to whether the appellant is eligible for exemption as available under Sl. No. 66 of Notifications No. 12/2017 Central Tax (Rate) dated 28.06.2017. On-going through the aforesaid entry of the said notification, it is found that the said notification has been amended vide notifications No.02/2018-Central Tax(Rate) dated 25.01.2018 and new item (aa) is inserted after item (a) in the entry in column (3) i.e. in Description of Services. After this amendment, entry at Sl. No.66 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 reads as under: 29. In order to avail the benefit under Sl. No. 66 (aa), the services should be provided by an educational institution. The words educational institution are defined at Para 2 (y) of the said notification and reads as under: (y) educational institution means an institution providing services by way of, - (i) pre-school education and education up to highe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ist given at para 26 above and made the following observations: Sr. No. Name of exam (Education course or programme) Regarding specific curriculum Recognizing the qualification by Law Assignment of task for conducting the exam Benefits of qualification 1. TET-1 As per the resolution No. PRE-1111-711-K dated 27th April 2011 passed by the Education Department, Government of Gujarat As per the provisions contained in the Right of Children to Free and Compulsory Education Act, 2009 As per the resolution No. PRE-1111-711-K dated 27th April 2011 passed by the Education Department, Government of Gujarat Eligibility test to appoint for the Job of Teacher in Primary school (Std. 1 to Std. 5). Eligibility test to appoint for the Job of Teacher in Upper Primary school (Std. 6 to Std. 8). 2. TET-2 3. TAT (Sec.) As per the Resolution No.BMS/1117/773/G dated 20 th May, 2017 passed by the Education Depart ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11. Drawing and Painting Course for the drawing lecturers to appoint in ATD colleges or Art colleges or Institutes. 12. Sculpture Course for the drawing lecturers to appoint in ATD colleges or Art colleges or Institutes. 35. As all criteria are complied with and the State Examination Board being the educational institution in so far as it provides services by way of conduct of exams at Sr. No. 1 to 12 in the list given at para 26 above, it is observed that the appellant is eligibleto avail the benefit of exemption under Sl. No. 66 (aa) of Notifications No. 12/2017 Central Tax (Rate) dated 28.06.2017 for exams at Sr. No. 1 to 12 in the list given at para 26 above. 36. The second issue requires to be addressed is as to whether the appellant is eligible to claim exemption benefit under the Sl. No. 5 of the Notifications No. 12/2017 Central Tax (Rate) dated 28.06.2017 for exams given at Sr. No. 13 and 14 in the list given at para 26 above. 37. In this regard, the appellant has submitted that they are eligible to avail the benefits of exemption under Sl. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 243G of the Constitution, which reads as under: ELEVENTH SCHEDULE (Article 243G) . 17. Education, including primary and secondary schools. 41. Appellant has referred definition of Education as per Dictionary.com, which reads as under: the act or process of imparting knowledge, especially at a school, college, or university As per the above definition, education can be considered as the act or process of imparting knowledge, especially at a school, college or university. This act of imparting knowledge also includes all the matters relating to imparting and controlling education. As held by Hon. SC, in State of Tamil Nadu vs. K.Shyam Sunder (2011) 8 SCC 737, the examination is always considered as one of the major means to assess and evaluate candidate's skills and knowledge be it a school test, university examination, professional entrance examination or any other examination. Thus, examination can be considered as an essential component of education. 42. However, appellant failed to submit the details of specific curriculum for the Diploma in Home Science and GCC Type Steno. The appellant has not submitted any docu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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