Case Law Details
In re Choice Foundation (GST AAR Kerala)
Now, it has to be noted that the applicant, in the case at hand, has stated that they require the ruling in their individual capacity of M/s The Choice Foundation, Kochi, a Society registered under Travancore Cochin Literacy, Scientific and Charitable Societies Registration Act, 1955. The applicant has stated that they offer their expert services and undertake day-to-day administration and operation of the educational institution purely from an academic perspective which is going to be run and managed by by the new born JV. The moot point to be deliberated is whether the applicant is the ‘person’ to whom the project is extended and the one providing the service. It is very clear that the project is executed by the ‘Joint Venture’. The applicant in its Individual capacity is different from the JV, in which the applicant is a member. The ‘project’ is executed by the JV and not by the applicant.
As per Section 95(a) of the CGST Act read with Section 103 of the Act, the term ‘advance ruling’ means a decision provided by this authority to the applicant on matters or questions specified in sub-section (2) of Section 97 in relation to the supply of goods or services or both being undertaken or proposed to be undertaken by the applicant and the ruling is applicable to only such person and the jurisdictional officer of such person. Thus it is seen that only an applicant who satisfies the condition mentioned in section 95 can apply for Advance Ruling.
From the submissions made by the applicant it can be seen that it is the Joint venture in which the applicant is a member who is going to run and manage the ‘Project’ and not the applicant. As discussed supra, a Joint Venture Company, which is formed by two or more entities, has a separate existence than that of the said entities. Therefore, supply of goods or services or both, being undertaken or proposed to be undertaken in respect of the “Project will be by the Joint Venture Company, and not by the applicant.
Question 1.. Vis-a-viz the applicant, who would be the recipient of service in the proposed joint venture?
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