TaxTMI 
TaxTMI 
2023 (7) TMI 701
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....ment of Kerala under Section 27A of The Kerala Conservation of Paddy Land and Wetland Act, 2018 for change of description of land from wetland to ordinary land in Government of Kerala village office records and permission for construction of office complex for the purpose of business. 4. The contentions of the applicant: 4.1. The applicant submits that their major business income consists of income from gold loans, income from money transfer business, purchase and sale of foreign currency etc. They discharge the GST liability on their output services and also discharge GST on reverse charge liability in terms of Notification No. 13/2017 CT (Rate) dated 28406.2017. They are regular in filing GST returns. They own 0.5 Ares (58 Cents) of land in Valapad village in Thrissur District which is a wetland as per the records of the village authorities. They wanted to change the description of the land from wetland to dry land in the village office records for the purpose of construction of office complex. For this purpose, they had to remit prescribed amount of fee to the government as per provisions of Kerala Conservation of Paddy Land and wetland Act 2018. Such payment is required under....
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....r local authority must be in relation to a function entrusted to a Panchayat under Article 243G of the Constitution. "In relation to" means that services other than directly rendered by the Government for the purpose of any function entrusted to Panchayat under Article 243 G of the Constitution also will qualify within the meaning of service rendered by the Government as per the Notification. 4.6. Article 243 G of the Constitution of India and the Eleventh Schedule is reproduced below; 243G. Poitiers authority and responsibilities of Panchayath: Subject to the provisions of this Constitution the Legislature of d State may by law, endow the Panchayats with such powers and authority as may be necessary to enable them to function as institutions of self-government and such law may contain provisions for the devolution of powers and responsibilities upon Panchayats at the appropriate level subject to such conditions as may be specified therein with respect to - (a) The preparation of plans for economic development and social justice. (b) The implementation of schemes for economic development and social justice as may be entrusted to them including those in relation to the matter....
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....unnotified land:- (1) if any owner of an unnotified land desires to utilize such land for residential or commercial or for other purpose shall apply to the revenue divisional officer for permission in such manner as may be prescribed. (2) Notwithstanding anything contained in any judgement decree or order of any court or tribunal or any other authority, the Revenue Divisional Officer may after considering the reports of the village officer concerned, pass such orders as deemed fit and proper, on such, applications, ensuring that there is no disruption to the free flow of water to the neighbouring paddy lands, if any, through such water conservancy measures as is deemed necessary. 4.10. As per Section 27 A of the Act while allowing an application under section (permission for utilizing unnotified land for residential or commercial purpose) the Revenue Divisional Officer should ensure that there is no disruption to the free flow of water to the neighbouring paddy lands, if any, through such water conservancy measures as is deemed necessary, further, as per Section 5 of the said Act there shall be a local level monitoring committee in each panchayat or municipality consisting of ....
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....d consequently reverse charge liability also is not attracted. 5. Comments of the Jurisdictional Officer: The application was forwarded to the jurisdictional officer as per provisions of Section 98(1) of the CGST Act. The jurisdictional officer has not submitted any remarks and hence it is presumed that the jurisdictional officer has no specific comments to offer. It is also construed that no proceedings are pending on the issue against the applicant. 6. Personal Hearing: The applicant was granted an opportunity for a personal hearing on 08.12.2021. Shri. K.R. Ramankutty, Chartered Accountant represented the applicant in the personal hearing. The representative reiterated the contentions made in the application and requested to issue a ruling based on the submissions in the application. 7. Discussion and Findings: 7.1. The issue was examined in detail. The question to be answered is whether reverse charge liability under Notification No. 13/2017 CT (Rate) dated 28.06.2017 is attracted on the payment made by the applicant to the Government of Kerala under Section 27 A of The Kerala Conservation of Paddy Land and Wetland Act, 2018 for change of description of land from wetland ....
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.... to promote growth in the agricultural sector and to sustain the ecological system, in the State of Kerala. The Preamble of the said Act reads as follows; "Whereas if has come to the notice of the Government that indiscriminate and uncontrolled reclamation and massive conversion of paddy land and wetland is taking place in the State; And whereas there is no existing law to restrict effectively, the conversion or reclamation of paddy land; And whereas the Government are satisfied that it is expedient, in the public interest to provide for the conservation of paddy land and wetland and to restrict the conservation or reclamation thereof, in order to promote agricultural growth, to ensure food security and to sustain the ecological system in the State of Kerala. 7.6. Section 2 (iii) of the Kerala Conservation of Paddy Land and Wetland Act, 2008 defines; "conversion" as follows; "conversion' means the situation whereby, the land that has been under paddy farming and its allied constructions like drainage channels, ponds, canals, bunds and ridges are put to use for any other purpose. 7.7. As per Section 2 (xv) of the said Act; "reclamation" means such acts or series of act....
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....hall be set apart for water conservancy measures. (3) If the application is allowed, the applicant shall be liable to pay a fee at such rate as may prescribed: Provided that, no such fee shall be collected if the applicant proves that the land where the application is allowed is, filled up or naturally filled up before the 4th day of July, 2967, the date of commencement of the Kerala Land Utilization Order, 1967, after completing such procedure, as may be prescribed. (4) If the application is allowed, the Revenue Divisional Officer shall ensure that the reclamation of the unnotified land shall not adversely affect the cultivation of paddy or any other crops, if any, in the adjoining land and shall specify such water conservancy measures as is necessary to ensure such cultivation.- Provided that in specifying such water conservancy measures, the Revenue Divisional Officer may, if he deems fit, refer to satellite maps of the area maintained by Government agencies. (5) No permission under this section shall be necessary where the purpose for which the unnotified land is converted or attempted to be converted or utilized or attempted to be utilized is for paddy cultivation. ....
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.... the aforementioned details shall be appended to the order. (11) The Revenue Divisional Officer may, either suo moto or on the application of any aggrieved party, cancel any order issued under subsection (2) if the conditions specified in the order issued therein are not complied by the applicant, either fully or partially. (12) No order of cancellation under sub-section (11) shall be made by the Revenue Divisional Officer unless the applicant thereof has been given an opportunity of being heard in the matter. (13) Any application received for the change of nature of unnotified land from the date of commencement of the Kerala Conservation of Paddy Land and Wetland (Amendment) Act, 2018 shall be considered and disposed of only in accordance with the provisions of the Act." 7.10. On a combined reading of the definitions and the provisions of Section 27A of the said Act as extracted above, it is clear that the provision is about restrictions that may be imposed and the levy of fees and hence it is essentially an activity of permitting the use of unnotified land for residential, commercial or other purposes. The permission for conversion of unnotified land which has been include....