In re Shanmugavel Thevar Sesappan (GST AAR Tamilnadu)
The case of In re Shanmugavel Thevar Sesappan before the Goods and Services Tax Authority for Advance Ruling (AAR), Tamil Nadu, did not result in a determination on the taxability of environmental services but focused instead on a fundamental question of procedural law: the admissibility of an application for advance ruling when a parallel assessment or recovery proceeding is already initiated by the jurisdictional tax authority.
The applicant, M/s. Shanmugavel Thevar Sesappan, is a works contractor registered under the GST Act. The core of their business activity in question was providing a works contract service to the Sattur Municipality in the Virudhunagar District of Tamil Nadu. This service involved the revamping of the municipal dump site through a bio-mining process on a Design, Build, Own, and Operate () concept.
The Scope of the Service and Exemption Claim
The contract required the applicant to excavate the existing mixed compacted garbage and process it through mechanical sieving and other equipment at the applicant’s cost. The compensation for the work was agreed upon based on the net quantity of input waste processed from the dump yard.
The applicant contended that this service should be classified under Service Classification Code , covering ‘Sewage and waste collection, treatment and disposal and other environmental protection services.’ Crucially, the applicant sought a complete exemption from GST under Sl. No. of Notification No. -Central Tax (Rate), dated June .
