Case Law Details
In re Gujarat Industrial Development Corporation (GST AAAR Gujarat)
The appellant Gujarat Industrial Development Corporation submitted that they provide amenities like road, supply of water or electricity, street lighting, drainage, sewerage, conservancy etc and these qualify as ‘water supply for domestic, industrial and commercial purposes’, ‘public health, sanitation conservancy and solid waste management’ and ‘public amenities including street lighting, parking lots, bus stops and public conveniences’. Further, the appellant submitted that their activity to make available buildings on hire or sale to industrialist or persons intending to start industrial undertakings or commercial establishments qualifies as ‘regulation of land use and construction of buildings’. It is amply clear from submission of appellant the activities carried out by them specifically pertain to Industries/commercial centers established in notified area and not for general public. In this regard, unless there is specific entry pertaining to the establishment and development of industries in XII Schedule, the above mentioned activities cannot be said to pertaining to entries (as mentioned above) of XII Schedule and appellant does not fulfill the third condition of it being governmental authority.
From the above discussion we find that the appellant falls under the category of ‘Government Entity’. The term ‘Government Entity’ is defined at clause (zfa) of Para 2 of Notification No. 12/2017 CT(R) dated 28.06.2017 (as amended) as under:
((zfa) “Government Entity” means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature;or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.”.
The appellant fulfills the conditions of being a ‘Government Entity’. To the above extent we disagree with the findings of GAAR which concluded that GIDC falls under the category of ‘State Government’.
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