Case Law Details
In re Tirupati Construction (GST AAR Gujarat)
Whether the activity of composite supply of work contract service by way of development and construction of sports complex at Maninagar, Ahmedabad for the Ahmedabad Urban Development Authority, and as detailed in the tender document merit classification at Sr. No. 3(vi)(a) of Notification No. 11/2017-CT (Rate) dated 28.06.2017 ( hereinafter referred to as said NT)?
We have given much thought to the issue before us. We find the commercial uses of an already existing Sports complex at Bopal location as detailed in previous pages. We note the chargeable bookings and their rates, the non refundable nature of bookings too. With the plain reading of the inclusive definition of the word ‘business’ in CGST Act as reproduced at paragraph 19.1 with the nature of commercial activities in which AUDA is involved as evidenced with the above illustration, with nothing to dissuade us from what is a glaring and clear illustration of activity of AUDA w.r.t. a sports facility already existing, We are of the strong opinion that subject proposed Sports Complex is not predominantly meant for use other than for commerce, industry, or any other business or profession. There is nothing contrary that said Sports Complex will not be used for commercial purpose i.e. given for organizing sports event and any other event for consideration We do not rule out the complex’s intended commercial uses. We cannot water down or dilute the inclusive definition of business as defined in CGST Act. We again note that the definition of business as per CGST Act is an inclusive definition and the activities specified are only indicative and not exhaustive. We hold that the wording of the Notification should be strictly interpreted. The Wording in a statute for ‘ business’ and at entry 3(vi)(a) of said Notification, when clear, plain and unambiguous and only one meaning can be inferred, we are bound to give effect to the said meaning.. We give due Regard to the clear meaning of words and matter should be governed wholly by the language of the notification. We note that the explanation to said entry of the Notification wherein the term ‘business’ shall not include any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities and does not cover Government Authority. We cannot allow any scope for intendment. The subject Supply does not merit to be entertained at subject Serial Number 3(vi)(a) of said NT (as amended from time to time).
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
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