TMI Blog2021 (11) TMI 1133X X X X Extracts X X X X X X X X Extracts X X X X ..... , not involving any supply of goods would be treated as supply of pure services also the applicant has submitted that they are providing the same to Central / State Government. The interpretation by the applicant that their activity/services of providing Man Power Service involving providing of Technical personal, Data Operator, House Keeping Service etc. to different State Government and Central Government Department in the nature of pure service are functions entrusted to the Municipality and Panchayat, covered under article 243G and 243W of the Constitution is misplaced and devoid of merit. The act of providing man power to Central / State Government by the applicant can by no stretch of imagination be linked to an act of discharging any sovereign functions as envisaged and covered under the functions entrusted and as specified to municipalities / panchayats under 243G/243W of the Constitution of India. Nothing is in record to establish that the activity / provision of service of manpower which includes providing of technical personal, data operator, housekeeping service etc. by the applicant to different State Government and Central Government Department have any direct and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o different State Government and Central Government Department Such as: - S.No. Particulars Category Nature of Service 1. CHHATTISGARH RAJYA BEEJ EVAM KRISHI VIKAS NIGAM LIMITED State Government Undertaking To Provide Accountant 2. Social Welfare Department State Government Department To Provide Computer, Operator, Peon, Driver Etc. 3 C.G. State Road Development Department State Government Department To Provide Computer Operator, Peon, Driver Etc. 4. Labour Department State Government Department To Provide Computer Operator 5. C.G. Samvad State Government Department To Provide Computer Operator, Peon, Driver Etc. 2.2 That applicant is paying GST on whole amount which is received from department which inclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 07.2019 with Chhattisgarh State Civil Supplies Corporation Ltd. Raipur, copy of agreement dated 25.04.2017 with Chhattisgarh Rajya Beej evam krishi vikas nigam Ltd., copy of agreement dated 26.08.2016 with Regional office NHAI Ltd. Raipur and copy of contract agreement dated 28.08.2017 with PIU-Dwarka of NHAI were also submitted during the course of personal hearing, which has been taken on record. They reiterated their earlier contention in the matter as made in their ARA-01. Shri Harsh Jain also furnished a written submission dated 24.09.2021, which has also been taken on record. 5. The legal position, analysis and discussion:- At the very outset, we would like to make it clear that the provisions for implementing the CGST Act and the Chhattisgarh GST Act, 2017 [hereinafter referred to as the CGST Act and the CGGST Act ) are similar and thus, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the CGGST Act, 2017. Now we sequentially proceed to discuss the issues involved in the ruling so sought by the applicant and the law as applicable in the present case. 5.1 The appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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. Nil Nil . 5.4 Thus, above Notification at sr. no. 3 provides for Nil rate of GST for 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 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. 5.5 To have a better appreciation of the issues involved, definitions of the above terms as provided under the CGST Act, 2017 are rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r control, to carry out any function entrusted to a Municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. (v) (zfa) Government Entity means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.''. 5.6 The other decisive condition to be verified is whether the services provided by the applicant are services provided 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 For better appreciation, the functions entrusted to the panchayats under Article 243G of the Constitution of India are reproduced herein below: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 5.8 The applicant is of the view that they are exempt from the liability of GST in terms of clause 3 of the Notification No 12/2017 supra, being in the nature of pure service covered under the article 243G and 243W of the Constitution being functions entrusted to the Municipality and Panchayat. 5.9 To, avail the benefit of the aforesaid exemption, three conditions should be satisfied. Firstly, pure services (excluding works contract service or other composite supplies involving any goods) should be provided, secondly, it should be provided to the Central Government, State Government or Union territory or local authority or a Governmental authority and thirdly it should be 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. Supply of man power as discussed above provided by bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Customs (Import) Mumbai v. M/s. Dilip Kumar And Co. Others in C.A. No. 3327 of 2007 [2018 (361) E.L.T. 577 (S.C.)), has dealt with the question - What is the interpretative rule to be applied while interpreting a tax exemption provision/notification, when there is an ambiguity as to its applicability with reference to the entitlement of the assessee or the rate of tax to be applied? The Hon'ble Apex Court after a detailed analysis of various decisions of the Apex Court in the context of interpretation of exemption has held that - (i) Exemption notification should be interpreted strictly; the burden of proving applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. (ii) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the Revenue. In Commissioner of Central Excise, Trichy v. Rukmani Pakkwell Traders ((2004) 11 SCC 801 = 2004 (165) E.L.T. 481 (S.C.)], the Apex Court held : It is settled law that exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
