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TMI Blog2021 (7) TMI 1363X X X X Extracts X X X X X X X X Extracts X X X X ..... fter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: 3.1. The applicant, Andhra Pradesh State Road Transport Corporation (APSRTC) was established on 11th January,1958 as per The Road Transport Act, 1950 by G.O Ms No.36, Home (Transport - IV) dated 06-01-1958. As a consequence of bifurcation of the erstwhile United State of Andhra Pradesh into Telangana and Andhra Pradesh, APSTRC (erstwhile) was bifurcated into TSRTC and APSRTC, with some issues still pending regarding the division of assets and liabilities between the two corporations. 3.2. APSRTC, though operating under the Public Transport Department (PTD) of Government of Andhra Pradesh, is completely an independent entity with operational autonomy and operates as an independent corporation with its own sources and application of funds. The Central Government owns a stake of 31% with Rs.35.62 Crores as capital contribution and the State Government of Andhra Pradesh (GOAP) owns the balance stake of 69% with a capital contribution of Rs.79.53 Crores. 3.3 Of late, the Government of Andhra Pradesh vide GO MS NO 50 dt 30-12-2019, had taken up the process of merger of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sport undertaking shall pay on the inward supplies is not eligible as input tax credit and it will eventually add up to the cost of service. Therefore, as per the understanding of the applicant, the following entry had been contemplated and provided in the tariff. Thus, the entry of exemption is meant to provide relief to the cost of transport. 5.3 As per Entry No 22 of Notification 12/2017 Central Tax (Rate)- SAC 9966 or 9973, service by way of giving on hire to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers is exempt from Tax. In accordance with that entry, at present the private players are providing their buses on lease to APSRTC and the same was eligible for exemption. 5.4 The applicant claims that the intention of the above entry is only to provide exemption to public transport. It is further remarked that, if the benefit of exemption is provided to a state-run Transport undertaking, then why not the same is provided to the State Government itself. 5.5 The applicant further submits that it was the customary practice in our country that every State Government had created a separate corporation (normally named as {State Name} Road T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government or one or more State Governments, or by the Central Government and one or more State Governments; (iv) ZillaParishad or any other similar local authority Explanation:- For the purposes of this clause, "road transport service" means a service of motor vehicles carrying passengers or goods or both by road for hire or reward; 6.3 From the above definition it is clear that the "State Transport undertaking" need not be confined to Road Transport corporations as it is only one of the alternatives provided in the definition. The definition also extends to i. Transport carried by Central Government or Sate government as per clause (i) of the said definition ii. even by municipalities - as per clause (iii) of the said definition. iii. Even by any other companies owned or controlled by Central or State Government - not being the Road Transport Corporation set up under (iii) above. iv. Even by Zilla parishads or other similar local authorities. 6.4 The applicant submits that the intention of the above entry is only to provide exemption to state-run public transport. He further opines that if the benefit of exemption is provided to a state-run Transport undertaking th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g on hire - (a) to a state transport undertaking, a motor vehicle meant to carry more than twelve passengers; or (b) to a goods transport agency, a means of transport of goods. Nil Nil The above Exemption entry comes with the following qualifiers, a) A motor vehicle meant to carry more than twelve passengers is to be hired and b) The services are to be supplied to a State Transport Undertaking. 7.3 As the 1st condition is explicitly meted out in the instant case, now we examine whether the Department of Public Transport would come under 'State Transport Undertaking'. As the GST Act is silent on the definition of the 'State Transport Undertaking', recourse has been taken to the Motor Vehicles Act. As per "Section 2(42) of Motor Vehicles Act, 1988, "State transport undertaking" means any undertaking providing road transport service, where such undertaking is carried on by, (i) the Central Government or a State Government; (ii) any Road Transport Corporation established under section 3 of the Road Transport Corporations Act, 1950 (64 of 1950); (iii) any municipality or any corporation or company owned or controlled by the Central Government or one or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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