2024 (4) TMI 146 - AAAR - GST

AAAR Rajasthan sets aside GST exemption ruling for Board of Secondary Education examination services

In Re: M/s. Board of Secondary Education, Jaipur Road, Ajmer, Rajasthan

The AAAR Rajasthan set aside the AAR ruling dated 17.06.2022 regarding GST exemption for services provided to Board of Secondary Education for conducting ... Exemption from GST - Scope of the Term 'Applicant' for seeking advance Ruling - services provided by the suppliers to the Board of Secondary Education in relation to conducting examination - N/N. 12/2017-Central Tax (Rate) dated 28.06.2017 read with explanation in paragraph 3 clause (iv) and read with Circular No. 151/07/2021-GST dated 17th June, 2021 - HELD THAT:- In the case of M/s Anmol Industries Ltd. versus West Bengal Authority for Advance Ruling, Goods and Services Tax, [2023 (5) TMI 288 - CALCUTTA HIGH COURT] the Hon'ble High Court, Calcutta held that the court set aside the ruling of AAR and remanded back the matter to AAR to decide the application on merits and in accordance with the law. It is observed that AAR Rajasthan have not taken note of the above judgement of the Hon'ble High Court as the judgement had not been pronounced at the relevant point of time. Thus, it will be in the fitness of things if the Authority for Advance Ruling consider the ratio of the judgement & pass a ruling thereafter. It is left open to the Authority for Advance Ruling to consider applicability of the judgement as per settled principles of jurisprudence. The Ruling of AAR. Rajasthan dated 17.06. 2022. is set aside and the matter is remanded back to the AAR to decide the application afresh after considering the judgement of Hon'ble High Court, Calcutta delivered in the case M/s Anmol Industries Ltd. Versus West Bengal Authority for Advance Ruling, Goods and Service Tax. Issues Involved:1. Whether the services provided by various suppliers to the Board of Secondary Education in relation to conducting examination can be treated as exempted under the provisions of Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.2. Whether the Authority for Advance Ruling (AAR) erred in dismissing the application on the ground that the appellant is not a supplier of goods or services.Summary:Issue 1: Exemption of Services Provided to Board of Secondary EducationThe appellant, Board of Secondary Education, sought a ruling on whether services such as printing of answer sheets, online examination form filling, and annual maintenance of computers used for examination, among others, can be treated as exempt under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. The appellant argued that these services are exempt as per the notification read with Circular No. 151/07/2021-GST dated 17th June 2021. The AAR, Rajasthan, however, did not entertain the application, stating that the appellant is the recipient of services and not the supplier, thus falling outside the purview of Section 95 of the CGST Act, 2017.Issue 2: Definition and Scope of 'Applicant'The appellant contended that the AAR erred in law by dismissing the application on the ground that the appellant is not a supplier. They argued that the definition of 'applicant' under Section 95 of the CGST Act, 2017, includes any person registered or desirous of obtaining registration under the Act, which encompasses the Board of Secondary Education. The appellant further cited the judgment of the Hon'ble High Court, Calcutta in M/s Anmol Industries Ltd. v/s West Bengal Authority for Advance Ruling, Goods and Service Tax, where it was held that the term 'applicant' is broad and includes registered persons seeking a ruling on the applicability of an exemption notification.Discussion and Findings:The appellate authority observed that the AAR, Rajasthan, did not consider the broader interpretation of 'applicant' as defined by the Hon'ble High Court, Calcutta. The court held that the term 'applicant' includes any person registered under the GST law, and the appellant's application falls within the scope of Section 97(2)(b) of the CGST Act, 2017, as it seeks a ruling on the applicability of an exemption notification.Order:The appellate authority set aside the ruling of the AAR, Rajasthan, dated 17.06.2022, and remanded the matter back to the AAR to decide the application afresh after considering the judgment dated 21.04.2023 of the Hon'ble High Court, Calcutta in the case of M/s Anmol Industries Ltd. v/s West Bengal Authority for Advance Ruling, Goods and Service Tax.