Case Law Details
In re Anandjiwala Technical Consultancy (GST AAR Gujarat)
Q. Whether the Rajkot Urban Development Authority (RUDA) (Accredited Department of Gujarat State Government) falls under the definition of Government Authority or a Government entity as defined under para 2(zf) & 2(zfa) of the Notification No.12/2017-Central Tax(Rate) dated 28.06.2017 and consequently Pure Service which the applicant is providing to them is exempt from tax or not by virtue of Notification No.12/2017?
We find that the applicant has devoted a major part of his submissions trying to prove or to establish that the Rajkot Urban Development Authority is covered under the definitions of Governmental Authority or Government Entity. We find that they have also referred to the Gujarat Town Planning & Urban Development Act, 1976, Question no.25 of FAQ on Government Services under Sectoral Series released by CBEC, list of the functions entrusted to a municipality under Article 243 W of the Constitution of India etc. However, they have hardly devoted any space in their submission to prove the fact that the services supplied by them to the Rajkot Urban Development Authority are pure. They have not even submitted the copy of the agreement made by them with the Rajkot Urban Development Authority with respect to the aforementioned service supplied by them. Here, we would like to emphasise that the primary condition for an applicant to be eligible for the exemption by virtue of Entry No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) is that the services supplied by them are pure i.e. services supplied/provided without any supply of goods and excluding Works Contract service or other composite supplies involving supply of any goods, and only if it is proved or established that the services provided by them are pure, will the applicability of the other conditions i.e. whether the recipient of the services is a Governmental Authority or Government Entity, whether the services supplied are in relation to functions entrusted to a municipality or a panchayat under Articles 243G or 243W of the Constitution etc. will be looked into. However, under the above circumstances, it would not be possible for us to decide whether the services supplied by the applicant are pure or otherwise merely on the basis of the letter of acceptance submitted by them. Further, in absence of the aforementioned agreement, and without going through the terms and conditions of the agreement, it would not be possible for us to decide whether the Services provided by the applicant are Pure or are a supply of services along with supply of goods since the work is connected to the project of Affordable Housing and could also involve Works Contract service. In view of the facts mentioned above, we are of the opinion that in absence of the relevant documents, we cannot take a decision in this regard. We find that the applicant has devoted a major part of his submissions trying to prove or to establish that the Rajkot Urban Development Authority is covered under the definitions of Governmental Authority or Government Entity. We find that they have also referred to the Gujarat Town Planning & Urban Development Act, 1976, Question no.25 of FAQ on Government Services under Sectoral Series released by CBEC, list of the functions entrusted to a municipality under Article 243 W of the Constitution of India etc. However, they have hardly devoted any space in their submission to prove the fact that the services supplied by them to the Rajkot Urban Development Authority are pure. They have not even submitted the copy of the agreement made by them with the Rajkot Urban Development Authority with respect to the aforementioned service supplied by them. Here, we would like to emphasise that the primary condition for an applicant to be eligible for the exemption by virtue of Entry No.3 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 (as amended from time to time) is that the services supplied by them are pure i.e. services supplied/provided without any supply of goods and excluding Works Contract service or other composite supplies involving supply of any goods, and only if it is proved or established that the services provided by them are pure, will the applicability of the other conditions i.e. whether the recipient of the services is a Governmental Authority or Government Entity, whether the services supplied are in relation to functions entrusted to a municipality or a panchayat under Articles 243G or 243W of the Constitution etc. will be looked into. However, under the above circumstances, it would not be possible for us to decide whether the services supplied by the applicant are pure or otherwise merely on the basis of the letter of acceptance submitted by them. Further, in absence of the aforementioned agreement, and without going through the terms and conditions of the agreement, it would not be possible for us to decide whether the Services provided by the applicant are Pure or are a supply of services along with supply of goods since the work is connected to the project of Affordable Housing and could also involve Works Contract service. In view of the facts mentioned above, we are of the opinion that in absence of the relevant documents, we cannot take a decision in this regard.
FULL TEXT OF ORDER OF AUTHORITY OF ADVANCE RULING, GUJARAT
BRIEF FACTS
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