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TMI Blog2023 (4) TMI 303X X X X Extracts X X X X X X X X Extracts X X X X ..... t) against the Advance Ruling No. GUJ/GAAR/R/51/2021 dated 06.09.2021. 3. Brief facts of the case: 3.1 M/s Sankalp Facilities and Management Services Pvt. Ltd., C-53, Amrapali Society, Near Vrajdham, Manjalpur, Vadodara Gujarat (hereinafter referred to as 'the appellant'), holding GSTIN: 24ABCCS8100M1ZC is engaged in the business of providing manpower supply for housekeeping, cleaning, security, data entry operator etc. 3.2 The appellant submitted that it provides manpower supply services to several Government authorities/ entities and that the appellant is eligible to claim exemption benefit under Sr.No.3 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 for pure services (supply of manpower, security service) provided to Central Government, State Government, Local authorities, Government entities as detailed, in their application, subject to the condition that the services provided to these entities mentioned are provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. 3.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eness which might both have a direct significance as well as an indirect significance depending on the context. It also held that the expression 'in relation to' has been interpreted to the words of widest amplitude". (c) They rely on the order of Advance Ruling Authority in the case of A.B. Enterprise vide order GUJ/GAAR/R/2020/18 wherein appellant is engaged in supplying manpower for security and housekeeping to the Central Government, State Government and Local authority. Though the order is conditional but the analysis of certain work order clearly suggests that if the service recipient i.e. Central Government , State Government. Local authority is involved in any functions as per Article 243G or 243 W. then the pure services provided to them would be eligible for exemption from payment of tax. That the case of the appellant is squarely covered in the aforesaid ruling. (d) The authority has erred in examining services provided by the appellant to various Government schools, by examining the same within the limited scope of Entry No.66 of the said notification. The appellant had sought exemption under the provisions of Entry No.3 of the said notification. Entry No. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ality / Panchayat under Article 243G and 243 W of the Constitution of India. Hospitals are community assets and therefore even the cleaning, security etc services are even otherwise directly in relation to Serial No. 29 of the Eleventh Schedule i.e. maintenance of community assets. (g) The GAAR erred in holding that there is no notification exempting services provided to/in Government offices. While it is admitted that there is no Entry exempting such services provided to all Government offices, but Entry No.3 does specifically cover the case of Government offices carrying out the functions enumerated in the Eleventh and the Twelfth Schedule of the Constitution of India. Entry no. 3 of the notification is specifically exempting such services and services 'in relation to...' provided to various Government offices. They place reliance on the judgement of Hon'ble Supreme Court of India in the case of T.N. Kalyana Mandapam Assn. Vs. UOI & Ors. reported in 2004 5 SC 632. (h) In light of the above the appellant submitted that the exemption is not limited to functions mentioned in the Eleventh and Twelfth of the Constitution of India, but it extends to even' kind of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the District Social Welfare Officer. Valsad and Chhota Udepur: (Category: State Government). These offices perform various functions under Article 243 G and 243 W specifically Entries no. 16. 24. 25. 26. 27. 28 of Article 243G and Entries No. 6 and 11 of Article no. 243W. and the appellant provides various manpower services for the work of peon, driver, data entry operator etc. to help in the fundamental works entrusted upon the concerned offices in discharge of various responsibilities under Article 243G and 243W of the Constitution of India. Identical work order is determined to be exempted under Entry at Sr. no. 3 of the notification no. 12/2017 in case of A.B. Enterprise by the Advance Ruling Authority vide order dated 19.05.2020 c) District Panchayat. Valsad (including its subordinate offices): (Category: Local Authority) These offices perform all the functions under Article 243 G and the appellant provides various manpower services for the work of peon, driver, data entry operator, security etc. to help in the fundamental works entrusted upon the concerned offices in discharge of various responsibilities under Article 243G and 243 W of the Constitution of India. Ide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. g) Office of the Deputy Conservator of Forest. Chhota Udepur: (Category: State Government) These offices perform various functions under Article 243 G and 243 W specifically Entries no. 6,7, 27 of Article 243G and Entries No. 8 of Article no. 243 W. and the appellant provides various manpower services for the work of peon, driver, data entry operator etc. to help in the fundamental w orks entrusted upon the concerned offices in discharge of various responsibilities under Article 243G and 243 W of the Constitution of India. Identical work order is determined to be exempted under Entry at Sr. no. 3 of the notification no. 12/2017 in case of A.B. Enterprise by the Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. h) Office of the District Rural Development Agency. Valsad: (Category: State Government) These offices perform various functions under Article 243 G specifically Entries no. 6. 9. 10, 11, 16. 25 of Article 243G. and the appellant provides various manpower services for the work of peon, driver, data entry operator etc. to help ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sponsibilities under Article 243G and 243 W of the Constitution of India. Identical work order is determined to be exempted under Entry' at Sr. no. 3 of the notification no. 12/2017 in case of A.B. Enterprise by the Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. l) Office of the District Education officer. (Valsad & Chhota Udepur). (Category: State Government) These offices perform various functions under Article 243 G and 243 W specifically Entries no. 17 and 25 of Article 243G and Entries No. 13 of Article no. 243 W. and the appellant provides various manpower services for the work of peon, driver, data entry operator etc. to help in the fundamental works entrusted upon the concerned offices in discharge of various responsibilities under Article 243G and 243W of the Constitution of India. Identical work order is determined to be exempted under Entry at Sr. no. 3 of the notification no. 12/2017 in case of A.B. Enterprise by the Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. m) Office of the Prayojana vahivatdar. Valsad & Chhota Udepur: (Category : State Government) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erprise by the Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. q) District Udhyog Centre. Valsad: (Category: State Government) These offices perform various functions under Article 243 G specifically Entries no. 8 & 9 of Article 243G, and the appellant provides various manpower services for the work of peon, driver, data entry operator, security, housekeeping etc. to help in the fundamental works entrusted upon the concerned offices in discharge of various responsibilities under Article 243G of the Constitution of India. Identical work order is determined to be exempted under Entry at Sr. no. 3 of the notification no. 12/2017 in case of A.B. Enterprise by the Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. r) Gujarat Eandless Labour & Agriculturalist Housing Board: (Category: Government Authority ) These offices perform various functions under Article 243 G specifically Entries no. 10, 16, 26. 27 of Article 243G. and the appellant provides various manpower services for the work of peon, driver, data entry operator etc. to help in the fundamental works entrusted upon the concern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of India. Identical work order is determined to be exempted under Entry at Sr. no. 3 of the notification no. 12/2017 in case of A.B. Enterprise by the Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. v) Shri C.H. Bhii Govt. Arts & Commerce College, Naswadi: (Category: Government Authority) These offices perform various functions under Article 243 G and 243 W specifically Entries no. 17, 18 & 19 of Article 243G and Entries No. 13 of Article no. 243W. and the appellant provides various manpower services for the work of peon, driver, data entry operator etc. to help in the fundamental works entrusted upon the concerned offices in discharge of various responsibilities under Article 243G and 243 W of the Constitution of India. Identical work order is determined to be exempted under Entry at Sr. no. 3 of the notification no. 12/2017 in case of A.B. Enterprise by the Advance Ruling Authority in Advance Ruling No. GUJ/GAAR/R/2020/18 vide order dated 19.05.2020. w) Office of the Assistant Director of Libraries: (Category: Government Authority) These offices perform various functions under Article 243 G and 243 W specifically E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon Entry No.3 to Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 for claiming exemption on supply of manpower services provided to the Central Government, State Government. Local authorities, Governmental authorities and Government entities. The extracts of the said entry No. 3 to Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 as amended, relied upon by the appellant for claiming exemption is reproduced below: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 3 Chapter 99 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 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 7.3 The following three conditions need to be fulfilled for availing exemption under the above referred entry:- i) There should be supply of pure services; ii) Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Entry No. 66(b) to Notification No.l2/2017-CT (Rate) dated 28.06.2017. The extract of same is as follows: SI.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent.) Condition (1) (2) (3) (4) (5) 66 Heading 9992 or Heading 9963 Services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union territory; (iii) security or cleaning or house-keeping services performed in such educational institution; (iv) services relating to admission to, or conduct of examination by, such institution; (v) supply of online educational journals or periodicals; Provided that nothing contained in sub-items (i), (ii) and (iii) of item (b) shall apply to an educational institution other than an institution providing services by way of pre-school education and education up to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to any activity in relation to any function carried out by these service recipients as entrusted under article 243G or 243 W of the Constitution of India. 7.9 The judgments relied upon by the appellant are not relevant as the same are delivered in different facts of the case. Further in the case of M/s. A. B. Enterprise, relied upon by the appellant, the GAAR held that the exemption is subject to the condition that the services provided are services provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. The aforesaid order is not relevant as in the present case it is being held that the services in question are not related to any activity in relation to any function carried out by the service recipients as entrusted under article 243G or 243 W of the Constitution of India. Further we are of the view that as per Section 103 of the CGST Act. any Advance Ruling is binding only on the appellant who has sought it and on the concerned officer or the jurisdictional officer in respect of the appellant. 8 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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