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2018 (12) TMI 228
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....the whole of GST. At the outset, we would like to make it clear that the provisions of both the CGST Act and the MGST Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / MGSI' Act would be mentioned as being under the "GST Act". FACTS AND CONTENTION - AS PER THE APPLICANT The submissions, as reproduced verbatim, could be seen thus- Statement of relevant facts having a bearing on the question(s) raised The applicant M/s. National Security Services are providing Security services inter alia to Pimpri Chinchwad Municipal Corporation. The Security Services are provided in form of providing Security guards to the sites of PCMC from where Water Supply is made to the city by PCMC, in other words we provide Security Services to Water Pump Houses, Purification Plants run by PCMC from where water supply is made to the city. Moreover, the Security Services are provided to ....
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....tional submissions by applicant. In this context our written submissions given during preliminary hearing held on 23/08/2018 may please be referred. The written submissions dated 21/08/2018 filed by the Deputy Commissioner, Div. III (Deccan) CGST Pune-II Commissionerate filed under F.No. VGN (30)87/ Dn.III/GSTII/ N-Security/ Adv. Ruling/ 2018-19, copy of which was also served on us, may also be referred to. In this connection, our submissions for final hearing are as under: The Department in their aforesaid submissions dated 21/08/2018 has given their opinion that the Exemption Notification No. 12/2017 - Central Tax (Rate) dated 28/06/2017 (Entry No.3 of the notification) is not applicable to us on the grounds that we are providing 'Assistants' to the Security Guards and the services provided by us pertains to providing assistants to Security Guards of PCMC (Pimpri Chinchwad Municipal Corporation) cannot be termed as services in relation to any activity in relation to any function entrusted to Municipality under Article 243W of the Indian Constitution but can be termed as providing manpower services for the work of security arrangements to various properties of PCMC. We....
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....etc. they are supposed to coordinate with the security department and also coordinate with police under the guidance of security department 6) They are supposed to work in three shifts or as and when required. All these duties and responsibilities cast by PCMC by way of agreement on the guards provided by us indicate that the security guards provided by us are not mere assistants / helpers (Madatnis) because they are fully responsible for the security of the entire premises and also supposed to handle the emergency situation like fire, theft etc. and are to coordinate with important organization like police, fire brigade, hospitals etc. Only the thing is that they are supposed to work under the supervision of security guards of the PCMC does not make them helpers but they themselves discharge the duties of security guard. The term "Madatnis" used in the relevant documents is only a convenience term used by PCMC only to indicate that the Security Guards provided by us should work under their direction and supervision. This is obvious because PCMC has outsourced their security functions as per the prevalent commercial practice due to insufficient number of security personnel on....
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.... providing such assistant to security guards of PCMC cannot be termed as services in relation to urban planning including town planning or any activity in relation to any function entrusted to Municipality under Article 243W of the constitution, is not tenable, as it is evident that the persons provided by us and security guards on the establishment of the PCMC form an entire security team and that the role of the persons provided by us is inseparable from entire security team as also can be seen from duty list and responsibilities cast on the persons provided by us by way of agreement (Annexure-A) to the agreement). Therefore persons provided by us clearly provide the services in relation to activities in relation the functions entrusted to Municipality under Article 243W of the Constitution and thereby entitled for the benefit of Exemption Notification No.12/2017-Central Tax (Rate) dated 28/06/2017 (Entry No. 03 of the Notfn.). We are thus providing security services which are pure services in relation to the functions entrusted to Municipality (PCMC in this case) under article 243 W of the Constitution and thereby entitled for the benefit of Nil rate of GST under the exemp....
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....nder (A, B, C, D) Prabhag PCMX Pimpri for the work of Health center, Water Supply, {Purification & STP plant as per given list No. of Security Guard for the month of May 2018". Whereas as per letter dated 14.02.2018 from Security Department of PCMC, the contract is for Thus, the contract is for providing "Assistants" to the Security Guards for the security arrangements of various properties of PCMC eg. Tax Collection, Ward Officers, Water Supply & Workshop etc.. The gist of the exemption Notification (Sr. No. of Notification No.12/2017-Central Tax (Rate) 28.06.2017) is as under: Sl.No. Chapter, Section, Heading, Group or Service Code(Tariff) Description of Services Rate (percent.) Condition 1. Chapter 99 Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil....
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....ity Guards of PCMC cannot be termed as Services in relation to Urban Planning including Town Planning or any activity in relation to any function entrusted to a Municipality under article 243W of the Constitution but can be termed as providing manpower services for the work of Security arrangements to various properties of PCMC. Therefore, the Exemption Notification 12/2017-Central Tax (Rate) dt.28.06.2017 (Entry No. 3 of the Notification) is not applicable to the Security Services rendered to Pimpri Chinchwad Municipal Corporation. 04. HEARING The case was taken up for Preliminary hearing on dt. 23.08.2018 when Sh. Nilesh Mapari, the applicant appeared and requested for admission of application . Jurisdictional Officer, Sh. S.A.S.Y. Hakim, Supdt., Division - III, Pune -II, CGST Commissionerate appeared and made written submissions. The application was admitted and called for final hearing on 18.09.2018, Sh. Sunil Singh Gahlod, Consultant along with Sh. Nilesh Mapari, the applicant appeared and made contentions as per details given in their application. Jurisdictional Officer, Ms. Himani Dhamija Bhange Patil, Asstt. Commissioner, Division - III, Pune -II, CGST Commissioner....
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....ot applicable to the Security Services rendered to Pimpri Chinchwad Municipal Corporation. Vide further detailed submissions the applicant has stated that the security guards provided by them are working under the overall supervision of the Security Guards, who are on the establishment of the PCMC and they are carrying carry out the entire function of the security. They have also cited the duties which are performed by their personnel when on duty under the PCMC. They have submitted that the security guards provided by them are not mere assistants/helpers) because they are fully responsible for the security of the entire premises and are also supposed to handle the emergency situation like fire, theft etc. and are to coordinate with important organization like police, fire brigade , hospitals etc, albeit under the supervision of security guards of the PCMC and therefore it does not make them helpers but they themselves discharge the duties of security guard. According to them the term "Madatnis" i.e. assistant/helper, used in the agreement is only a convenience term used by PCMC only to indicate that the Security Guards provided by them should work under their direction and supe....
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....ty in relation to any function entrusted to a ... ... ... ... ... Municipality under article 243W of the Constitution." In the subject case the applicant is providing pure services (without the supply of goods), as submitted by them, to PCMC. We find that the said services are in relation to any functions entrusted to a Municipality under article 243W of the Constitution. The agreement between the applicant and PCMC very clearly states that the applicant shall provide assistants to the Security Guards of PCMC. The invoice raised by the applicant mentions services rendered as, "Being round the clock helper to security service Providing assistance to the Security Guards of PCMC is an activity in relation to various functions as enumerated above which have been entrusted to a Municipality under article 243W of the Constitution. Hence we find that the applicant is entitled to the benefit of Notification No, 12/2007-CT(Rate) dated 28.06.2017. 05. In view of the extensive deliberations as held hereinabove, we pass an order as follows : ORDER (Under section 98 of the Central Goods and Services Tax Act, 2017 and the Maharashtra Goods and Services Tax Act, 2017) NO.GST-ARA....