TaxTMI 
TaxTMI 
2018 (7) TMI 76
X X X X Extracts X X X X
X X X X Extracts X X X X
....he activities undertaken by NDDB, to fulfill its objectives, include providing technical, financial as well as managerial assistance. 1.1 The applicant submitted that the NDDB Act also empowers them to transfer the whole or any part of its managerial, technical or other functions in relation to any organizations receiving assistance from the National Dairy Development Board to the recipient organization; that Section 16(4) of the NDDB Act has specifically authorized NDDB to undertake any activity entrusted by the central government or any state government where the government requires assistance of NDDB's expertise in the dairy development sector; that as per Section 16(5) of the NDDB Act, the applicant can participate, with the prior ap....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nable growth for Unions. 1.4 They further submitted that the applicant provides services to government or undertakes all managerial activity involving control over Unions with the sole objective of developing Unions without receiving any consideration in kind or otherwise. It is also submitted that the applicant has not issued any invoices to state governments or Unions. 1.5 The applicant further submitted that during the earlier regime of service tax, the services so provided by them were not subject to service tax in absence of any kind of consideration; that the situation would remain the same irrespective of the fact that the parties to the contract are related persons; that in GST regime, the transaction between related person wo....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... applicant further submitted that Unions are beneficiaries of the agreement as the agreements are entered into for their growth; that as per the agreement dated 26.9.2013 the scope of WAMUL is limited to provide support to NDDB in managing and running the operations of WAMUL. 1.9 The applicant then on the aspect of who can be considered as service recipient in any transaction referred the decisions of Delhi Tribunal in the case of Paul Merchants Limited Vs. Commissioner of C.Excise, Chandigarh (2013 (29) STR 257 (Tr-Del.) and GAP International Sourcing (India) Pvt.Limited Vs. Commissioner of S.Tax , Delhi (2015(37) STR. 757 (tri-Del.). 1.10 It is also submitted by the applicant that the relationship between parties is identified from ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d therefore, the same needs not require revaluation to open market value. 1.12 The applicant further stated that the agreements has originated due to signing of a contract between NDDB and the state governments and the applicant is in a position to control Unions only because of agreements due to which the relationship is formed and in such a situation the agreement because of which the relationship establishes cannot be considered a related party transaction requiring open market valuation; that the relationship is not established between them as a reason of acquiring any stake by either of them or any beneficial interest. 1.13 The applicant further stated that it is logically inappropriate that when the applicant does not charge any....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fines 'supply'. Some of the scope of supply, as per Section 7(c) of the Act, are the activities specified in Schedule I, made or agreed to be made without a consideration. One of the activities to be treated as a supply even if made without consideration, as per clause 2 of Schedule I, is the supply of goods or services or both between related persons or between distinct persons as specified in section 25, when made in the course or furtherance of business. 4. Provisions of Section 15 of CGST Act, 2017 provides for valuation of taxable supply of goods or services or both. Section 15 of the CGST Act lays down the valuation aspects under GST which explained the value of taxable supply of goods or services or both on which tax is payable. I....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ill the purposes as per the agreements made with the state governments and the applicant and in return they receive the benefits of it. 6 By the agreement dated 26th September, 2013, between the State of Assam and NDDB, made with a view to revive WAMUL, a decision is found to have been taken to hand over the management of WAMUL to NDDB under some terms and conditions specified therein. On perusal of this agreement, NDDB would manage the WAMUL as Administrator by way of implementing suitable business plan for WAMUL, marketing the milk and milk products of WAMUL, deploying suitable man power in WAMUL etc. 7 By the agreement dated 1st March, 2014, between the State of Jharkhand and NDDB, made with the purpose of revitalize the JMU, it wa....