Case Law Details
In re Healersark Resources Private Limited (GST AAAR Tamilnadu)
In the case at hand, the applicant has entered into lease agreements with third party service providers and in one such agreement entered into with AMET University( Academy of Maritime Education and Training) available on record, it is seen that the applicant has entered into the contract for lease of the property owned by AMET for the purpose of ‘running Hostels and providing accommodation for the students/Candidates, and/or general office purposes and lawful uses ancillary to any of the foregoing principle uses’. Thus, it is clear that the applicant, enters into agreement with third parties, in their own capacity, to enable themselves to provide the ‘Hospitality service’, which establishes that the activities of the applicant are independent in nature. Also, from the scope, language and the terms and conditions of the agreement of the applicant with AMSL, it is evident that the applicant is entrusted to provide the ‘Hospitality Services’ in the capacity of an Independent contractor only and not as an agent of AMSL.
For the above mentioned reasons, we do not find merit in the opinion of the State Member and reject the same.
From the facts of the case it is seen that the applicant is to extend the services as per the ‘Statement of Work’ (SOW) which includes provision of separate accommodation for girls and boys along with provision of food and other services for a fixed consideration towards accommodation (fixed rent per candidate) and variable consideration towards food and other facilities (based on the headcount/actuals). As stated in para supra, the scope, language and the terms of the agreement establishes that the applicant is to extend the bouquet of services required from them as ‘Hospitality Services’ together and in conjunction with each other and therefore is a naturally bundled ‘composite supply’ of service, with ‘Provision of accommodation’ as the principal service and we agree with the findings of the Central Member in this regard.
The final issue to be decided is whether the service is exempted under S.No. 14 of Notification No. 12/2017- CT (Rate) dated 28.06.2017.. The relevant entry is as under:
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