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TMI Blog2025 (3) TMI 157X X X X Extracts X X X X X X X X Extracts X X X X ..... e provisions of the Central Goods and Services Tax Act, 2017 (the CGST Act, for short) and the West Bengal Goods and Services Tax Act, 2017 (the WBGST Act, for short) have the same provisions in like matter except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean reference to the corresponding similar provisions in the WBGST Act. Further to the earlier, henceforth for the purposes of these proceedings, the expression "GST Act" would mean the CGST Act and the WBGST Act both. 1.2 The applicant is a proprietorship firm engaged in the supply of contractual manpower and duly registered under the present Goods and Services Tax regime. The applicant entered into an agreement with the West Bengal Livestock Development Corporation Limited, which is a Government of West Bengal Undertaking, for providing Mobile Veterinary Unit (MVU) personnel on contractual basis at different units of the State of West Bengal Livestock Development Corporation Limited. The said agreement was executed pursuant to the applicant's tender having been accepted in this behalf. 1.3 The applicant has made this applicati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s issued by the Chief Executive Officer, Paschim Banga Go-Sampad Bikash Sanstha to the Deputy Director, ARD & PO Department, Government of West Bengal on the acceptance of Mobile Veterinary Units. It was stated in the said memorandum that emergency animal healthcare services at farmers' door step would be provided through Mobile Veterinary Units (MVUs) and that the competent authority had approved the operation of Mobile Veterinary Units in different districts by the service provider/West Bengal Livestock Development Corporation Limited as per the following details - No. of MVU Districts to be covered 71 Coochbehar, Jalpaiguri, Alipurduar, Siliguri, South 24 Parganas and Paschim Burdwan and Nadia 2.4 On 22.03.2023 the Department of Animal Resources Development, Government of West Bengal, issued standard operating procedures for Establishment & Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Healthcare & Disease Control (LH & DC) Scheme. The said standard operating procedure contains guidelines as to the mode of operation of Mobile Veterinary Units in several blocks of the State. The costs for operationalization of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e aims and objectives of the Scheme, it becomes clear that the Central Government in association with the State Government has sought to operationalize Mobile Veterinary Units as part of the strategy for Establishment & Strengthening of Veterinary Hospitals & Dispensaries. It also becomes clear that the MVUs would run on PPP mode, whereby manpower would be outsourced by the implementing agencies to private parties such as the present applicant. Thus, execution of the Livestock and Disease Control Scheme involves performance of several individual activities. Private manpower suppliers such as the instant applicant is one such partner entrusted with the responsibility of providing MVU personnel on PPP basis, although overall responsibility lies with the concerned State Government/Union Territory Government. 2.9 As consideration for provision of MVU personnel on contractual basis, the applicant has been receiving stipulated remuneration from time to time, although without GST thereon. 2.10 Sl. No. 5 of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017 exempts services by a Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned. Any contrary approach would be destructive of the Government's intention as well violative of the beneficial objectives sought to be achieved. It is in this context that outsourcing of MVU personnel services to the applicant which is already a successful tendered of the West Bengal Livestock Development Corporation Limited should be understood. 2.13 No element of individual "supply' by the applicant is involved in the instant facts and circumstances and the entire project of execution of the Scheme above-mentioned must be understood as an integrated provision of services by the Government entity/Government concerned. This is evident from a plain reading of the memo dated 01.04.2024 issued by the West Bengal Livestock Development Corporation Limited, wherein it has been stipulated that the services of MVU personnel may be "directly placed to the ARD Department, Govt. of West Bengal". 2.14 Alternatively and without prejudice, the applicant's supply of services in question ought to be understood as services provided to the Central Government or State Government by way of any activity in relation to a function entrusted to a Panchayat/Municipality under Articles 243G/243W o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter of animal husbandry, dairying and poultry. The services in question provided by the applicant fall within the ambit of "by way of any activity in relation to any function entrusted to a Panchayat" and are eligible for exemption under sl. no. 3 of Notification No. 12/2017-CT(Rate) dated 28.06.20217. 2.17 From a perusal of the definition of 'animal husbandry' given in authoritative dictionaries, it becomes evident that rendering of healthcare services and caring for livestock and poultry are inbuilt in the concept of animal husbandry activities. The said definitions are set out here under as follows: a) The American Heritage College Dictionary (fourth edition) defines animal husbandry as the branch of agriculture concerned with the care and breeding of domestic animals. b) Words and Phrases Legally Defined (fourth edition) states that the rules of good husbandry include taking of necessary steps to, inter alia, maintain crops and livestock free from disease. c) The World Book Dictionary defines animal husbandry as the breeding, raising and care of farm animals. d) Webster's Encyclopedic Unabridged Dictionary of the English Language defines animal husba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Such view of the matter would also accord with animal welfare jurisprudence in India. 2.21 The principle of contemporanea expositio, which is a well settled principle of statutory interpretation, fully supports the applicant's aforesaid explanations and submissions. The Department of Animal Husbandry and Dairying under the Ministry of Fisheries, Animal Husbandry and Dairying (Government of India) has itself recognized the preservation and protection of livestock through provision of healthcare as a main thrust area. The said Department of the Government of India is responsible for matters relating to livestock production, preservation, protection from diseases and matters connected therewith. Protection of livestock through provisioning of adequate healthcare facilities has been listed as one of the main objectives of the Department of Animal Husbandry and Dairying. It is pertinent to mention that the Brief note on 9 Years' achievement of the said Department of Government of India, issued by the Press Information Bureau on 27.06.2023, made reference to the Livestock Health and Disease Control Scheme (Establishment and Strengthening of existing Veterinary Hospitals and Di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovides the infrastructure and funding for the scheme in collaboration with the Government of India. (iii) it is to be understood that the Government of West Bengal is the recipient of services from the applicant. 2.24 The applicant thus is of the view that the services in question are eligible for exemption under sl. no. 3 of Notification No. 12/2017-CT(Rate) dated 28.06.20217. 3. Submission of the Revenue 3.1 The Assistant Commissioner of CGST & CX, Park Street Division, Kolkata South CGST & CX Commissionerate has expressed his views as under: It is to inform that such services are not exempted as per Notification No. 12/2017-Central Tax. As per Sl. No. 46 of Notification No. 12/2017-Central Tax services of only veterinary clinic is exempted. Therefore, applicant's case appears to be not covered. Also as per Article 246(3) of the Constitution of India, matters related to preservation, protection and improvement of livestock, prevention of animal diseases, and veterinary training falls under the State List, granting states exclusive legislative powers. 4. Observations & Findings of the Authority 4.1 We have gone through the records of the issue as well as submissions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplying MVU personnel and raising tax invoices from time to time. The applicant-service provider is also required to perform a host of assignments, including provision of animal healthcare services through deployment of Mobile Veterinary Units (MVUs) under the Livestock Health & Disease Control Scheme of the Department of Animal Husbandry and Dairying, Ministry of Fisheries & Animal Husbandry and Dairying, Government of India. Admittedly the applicant makes supply of labour/manpower for running the production at different units of the West Bengal Livestock Development Corporation Limited. 4.5 Clause (93) of section 2 of the GST Act speaks that "recipient" of supply of goods or services or both, means- (a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is given or made available; and (c) where no consideration is payable for the supply of a service, the person to whom the service is rendered, and any reference to a person to w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 28.06.2017 is concerned exclusively with supply of services by the Central Government, State Government, Union territory or local authority excluding, (a) services by the Department of Posts and the Ministry of Railways (Indian Railways)]; (b) services in relation to an aircraft or a vessel, inside or outside the precincts of a port or an airport; (c) transport of goods or passengers; or (d) any service, other than services covered under entries (a) to (c) above, provided to business entities. 4.9 As already discussed above, the applicant's contention that the entire project of execution of the Scheme above-mentioned cannot be held as an integrated provision of services by the Governmental authority/Government concerned and that the applicant is not providing services directly to the Government. The applicant himself is neither Government nor a Governmental Authority. Hence, the applicant's supply of MVU personnel on contractual basis for implementation of "Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control (LH & DC) Scheme" does not qualify for exemption benefit unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ification No. 12/2017-Central Tax (Rate) dated 18.06.2017. 4.12 Now, regarding the pre-condition, vide sl. (c) as discussed in para 4.10 above, there is no denial that the applicant's supply of services in question is related to animal husbandry, darying and poultry is directly covered by entry no.4 of the 11th Schedule to the Constitution of India appended to Article 243G of the Constitution of India and hence can be held as a supply by way of an activity in relation to a function entrusted to a Panchayat/Municipality under Articles 243G/243W of the Constitution of India. 4.13 But, as per the pre-condition, vide sl. (b) as discussed in para 4.10 above, a supply, in order to qualify for exemption benefit under Sl. No. 3 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017 shall has to be provided to the Central Government, State Government or Union territory or local authority. This is to re-iterate that as discussed in para 4.7, the applicant is making the supply of MVU personnel on contractual basis for implementation of "Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Health & Disease ..... X X X X Extracts X X X X X X X X Extracts X X X X
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