2025 (3) TMI 157 - AAR - GST

AAR rules manpower supply for Mobile Veterinary Unit operations ineligible for GST exemption under N/N. 12/2017-Central Tax

In Re: Utpal Kumar Guha

In Re: Utpal Kumar Guha - TMI ISSUES PRESENTED and CONSIDEREDThe core legal questions considered in this judgment are:Whether the applicant's supply of Mobile Veterinary Unit (MVU) personnel on a contractual basis constitutes an integrated provision of services by the Government, thereby qualifying for exemption under Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017.Whether the supply of services by the applicant is exempt under Sl. No. 5 or 6 of the aforementioned notification, which pertains to services provided by a Governmental Authority or Government.Whether the applicant's supply of services is exempt under Sl. No. 3 of the notification, which involves services related to functions entrusted to a Panchayat or Municipality under the Indian Constitution.Whether the services fall under heading 9983 (SAC) and are exempt under Sl. No. 46 of the notification, which pertains to services by a veterinary clinic.ISSUE-WISE DETAILED ANALYSIS1. Integrated Provision of Services by the GovernmentThe applicant argued that the supply of MVU personnel is part of an integrated service provision by the government, as the project is executed under a government scheme. The Court, however, found that two separate supplies occur: one by the applicant to the West Bengal Livestock Development Corporation Limited and another by the Corporation to the concerned Department. Thus, the applicant's supply is not an integrated government service.2. Exemption under Sl. No. 5 or 6 of the NotificationSl. No. 5 of the notification exempts services by a Governmental Authority relating to functions entrusted to a Panchayat, while Sl. No. 6 exempts services by the Government or local authority. The Court determined that the applicant is neither a Government nor a Governmental Authority. The supply of MVU personnel is made to the West Bengal Livestock Development Corporation Limited, not directly to the Government, disqualifying it from exemption under these entries.3. Exemption under Sl. No. 3 of the NotificationFor exemption under Sl. No. 3, the supply must be a pure service provided to the Government or local authority and related to functions entrusted to a Panchayat or Municipality. The Court found that the supply involves both services and goods, and the recipient is the West Bengal Livestock Development Corporation Limited, not a government entity. Therefore, the preconditions for exemption under Sl. No. 3 are not met.4. Exemption under Sl. No. 46 of the NotificationSl. No. 46 exempts services by a veterinary clinic in relation to animal healthcare. The Court noted that the applicant supplies manpower services and does not operate as a veterinary clinic. Consequently, the supply does not qualify for exemption under this entry.SIGNIFICANT HOLDINGSThe Court concluded that the applicant's supply of MVU personnel does not qualify for exemption under any of the specified entries in Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017. The supply is not considered an integrated government service, nor is it provided directly to a government entity. Furthermore, the supply does not meet the criteria for being classified as a service by a veterinary clinic.RULINGThe applicant's supply of MVU personnel on a contractual basis for the implementation of the 'Establishment and Strengthening of Veterinary Hospitals & Dispensaries (ESVHD) - Mobile Veterinary Unit (MVU) under Livestock Health & Disease Control (LH & DC) Scheme' is not eligible for exemption under Sl. No. 3, 3A, 5, 6, or 46 of the Notification No. 12/2017-Central Tax (Rate) dated 18.06.2017, as amended.