Case Law Details
In re Dredging and Desiltation Company Private Limited (GST AAR West Bengal)
The contract is meant for up-gradation of the Jalda Khoti Landing Centre at the confluence of Mandarmoni River and Bay of Bengal. Heavy siltation at the area has eroded the navigability of the river, affecting the livelihood of a large number of fishermen, as they are facing problems in negotiating the channel with their fishing boats. At the same time, the landing centre needs to be protected from land erosion, as the river swings back to the bank at the Jalda Khoti area. The Applicant’s supply involves the construction of spurs for providing protection against land erosion and improving navigability by dredging the channel. It is a works contract, intended to construct, improve/alter the immovable property, and involves the supply of goods such as granite stone, boulders, polypropylene gabions, nylon crates and filaments. It further involves supply of services like dredging, loading/unloading and transportation of the excavated material etc. It is, therefore, a composite supply of goods and service. It is also apparent from the price schedule mentioned in para 2.3 that supply of goods constitutes about 11% of the value of the composite supply.
It appears from the documents mentioned in para 2.2 that the recipient is a government entity, as defined under clause 2 (zfa) of the Exemption Notification.
The recipient is engaged in the development of fisheries. The term ‘fisheries’ is typically defined in terms of the people involved, species or type of fish, area of water or seabed, method of fishing, class of boats, the purpose of the activities or a combination of the preceding features. The occupation of fishing and fishermen are included in the ambit. The up-gradation of Jalda Kothi Landing Centre and the related work that has been awarded to the Applicant has a direct nexus with fisheries development, as evident from a reference in the reports mentioned in para 2.4 to the mass petition of the fishermen. It is, therefore, activity in relation to the development of fisheries – a function listed under SI No. 4 of the Eleventh Schedule, and, therefore, entrusted to a panchayat under Article 243G of the Constitution of India.
Exemption under SI No. 3A of the Exemption Notification is, therefore, applicable to the Applicant’s supply of the above works contract service.
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