TMI Blog2022 (12) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... r more participation by way of equity or control. Further, the applicant is to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. Damodar Valley Corporation fulfils the criterion laid down for Government entity as per Notification No. 31/2017 -Central Tax (Rate)/32/2017- Central Tax (Rate) both dated 13.10.2017 since it has been set up by an Act of Parliament with 100% control to carry out the function entrusted by the Government. - JHR/AAR/2022-23/01 - - - Dated:- 28-3-2022 - Sri M.V. Badari Prasad, and Sri Pradeep Kumar, Member Present for the applicant 1. Sri Harsh Gadodia, Chartered Accountant; 2. Sri. Bihari Choudhary, Manager- Finance, DVC, Maithon. Note: Under Section 100 of the JGST Act 2017, an appeal against this ruling lies before the Appellate Authority for Advance Ruling constituted under section 99 of JGST Act 2017, within a period of 30 days from the date of service of this order. PROCEEDINGS (Under sub-section (4) of Section 98 of Central Goods and Service Pax Act, 2017 and the Jharkhand Goods Service Tax Act, 2017) The present application has been filed under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fforestation etc. They have submitted, among others, that,- (i) DVC Act, 1948 urns passed by the Central Legislature, requiring the three Governments namely the Central Government and the Stale Government of West Bengal ami Bihar (vow Jharkhand) to participate jointly for the purpose of budding a Damodar Valley Corporation with the aim of development of Damodar valley falling within the stale of West Bengal and Jharkhand. 'Participating Governments', according to clause (4) of section 2 of the DVC Act means the Central Government, the Provincial Government, of Bihar, and the Provincial Government of West Bengal. (ii) The term 'Government entity' has been defined in paragraph - 4 of the Notification No. 11/2017- Central Tax (Rate), dated the 28th June, 2017 [as amended by Notification No.31/2017-Centrat Tax (Rate) tinted 13.10.2017] and paragraph - 2 of the Notification No. 12/2017- Central Tax (Rate), dated the 28th June, 2017 [as amended by Notification No. 32/2017-Central Tax (Rale) dated 13.10.2017] as under:- Government Entity means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliame ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... participating Government. The said section reads as follows: Liabilities of participating Governments to provide capital to the Corporation : The participating Governments shall, as hereinafter specified, provide the entire capital required by the Corporation for the completion of any project undertaken by it. (vii) Section 31 of the DVC Act speaks of payment by participating Governments which reads as follows: Payment by participating Government on specified date: Each participating Government shall provide its share of the capital on the dates specified by the Corporation and if any Government fails to provide such share on such dales the Corporation may raise loan to make up the deficit at the cost of the Government concerned. (viii) With regard to finance, the applicant has referred to section 27 of the DVC Act which reads as follows: Expenditure till the Corporation is established: All expenditure incurred by the Central Government for and in connection with the establishment of the Corporation up to the date of its establishment shall be treated as the capital provided by the Central Government to the Corporation and such capital shall be adj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opinion - (2) .............. (3) .............. (4) .............. (5) .............. (6) If the Corporation fails to carry out its functions, or follow the directions issued by the Central Government under this Act; the Central Government shall have the power to remove the Chairman and the members of the Corporation and appoint a Chairman and members in their places. (xii) It has been submitted by the applicant that a Memorandum of Agreement (MoA, for short) has been made on 04/11.2016 between the Ministry of Water Resources, River Development Ganga Rejuvenation, Government of India and the Damodar Valley Corporation, an autonomous organisation of the Government of India under Ministry of power for the implementation of National Hydrology Project (NHP) from 2016-17 to 2023-24 as a Central sector scheme. (xiii) According to the said MoA, the Ministry of Water Resources, River Development Ganga Rejuvenation, Government of India agrees to provide central assistance (Grants) under different activities for the completion of project targets subject to certain conditions. (xiv) The applicant has stated further that he has established the Soil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... passed by the Central Legislature. (b) Sub-section (1) and (1A) of section 4 of the DVC Act, as amended, states as under:- (i) The Corporation shall consist of,- (a) a Chairman; (b) a member (technical) and a member (finance); (c) one representative from the Central Government; (d) two representatives one each from the State Government of Jharkhand and West Bengal; (e) three independent experts one each from the field of irrigation, water supply and generation or transmission or distribution of electricity; and (f) a Member-Secretary. (ii) The Chairman and members under clauses (a), (b), (d) and (f) of sub-section (1) shall be appointed by the Central Government in consultation with the State Governments concerned while the members under clauses (c) and (e) shall be appointed by the Central Government, by notification in the Official Gazette. (iii) It has already been stated above that section 51 of the DVC Act empowers the Central Government to remove any member from the corporation. (iv) It has also been observed above that the participating Governments hold 100% of equity control of the applicant. (v) Section 11 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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