In the instant case, the assessee although an extended arm of State Government formed as a society to carry out charitable activities in the nature of ‘general public utility’ is in fact providing assistance to industrial houses and entrepreneurs for setting up of industry in the State of Tamil Nadu. The assessee facilitates in providing licence, approval and permission from various Government agencies for setting up of industry in the State, for which it is charging fee. The fee charged by the assessee is not remitted to the Government treasury or exchequer. After insertion of proviso to section 2(15) of the Act, the assessee has lost its character of charitable organization. The assessee is a service provider.
In exercise of the powers conferred by sub-section (1) of section 43 of the Prevention of Money-Laundering Act, 2002 (15 of 2003), and in consultation with the Chief Justice of High Court of Kerala, the Central Government hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance, Department of Revenue, number S.O. 841(E), dated the 1st June, 2006, namely.
