TaxTMI 
TaxTMI 
TaxTMI 
2019 (7) TMI 1285
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.... 2. 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 any dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provision under the MGST Act. Further, henceforth for the purposes of this Advance Ruling, a reference to "GST Act" would means CGST / MGST Act. 3A. FACTS AND CONTENTION - AS PER THE APPLICANT 1. The submissions, as reproduced verbatim, could be seen thus- 1. That M/s. Vidarbha Infotech Pvt Ltd a company set up under the Companies Act, 1956 was carrying on the business (hereinafter referred to as the contractor) comprising of dealership in computer hardware, software and peripherals and in the service sector segment covering the construction of IT Park, towing van activity. 2. That the contractor was awarded a contract from Nagpur Environmental Services Ltd. (NESL). Nagpur (a 100% subsidiary of the Nagpur. Municipal Corporation, Nagpur for providing services for the management of Non-Network Tanker with the help of GPRS system at Nagpur and is currently providing the same that NESL a....
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....inance (Department of Revenue) Notification No. 12,2017- Central Tax (Rate) :New Delhi. the 28th June. 2017 G.S.R...... (B).- In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do; on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said Act, as is in excess of the said tax calculated at the rate as specified in the corresponding entry in column (4) of the said Table, unless specified otherwise, subject to the relevant conditions as specified in the corresponding entry in column (5) of the said Table, namely: Table Sl. No. Chapter; Section, Heading, Group or Service Code (Tariff) Description of Services Rate (per cent) Condition (1) (2) (3) (4) (5) 1. Chapter 99 Services by an entity registered under section 12AA of the Income-tax Act, 1961 (43 of 1961) by way of charitable activities. Nil Nil 2. Chapter....
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....ultural, educational and aesthetic aspects (o) Burial grounds, cremations, cremation grounds and electric crematoriums (p) Cattle pounds, prevention of cruelty of animals (q) Vital statistics including registration of births and deaths (r) Public amenities including street lighting, parking lots, bus stops, public conveniences (s) Regularization of slaughter houses and tanneries. That this provides the powers, authority and responsibilities to the Municipality. 9. That subject to the provisions of the Constitution, the legislature of state may by law, endow (a) The municipalities with such powers and authority as may enable them to function as institutions of self-Government and such law may contain provisions for the devolution of powers and responsibilities upon the municipalities, subject to such conditions as may be specified therein subject to; i. The preparation of plans for economic development and social justice ii. The performance and functions and the implementation of schemes as may be entrusted to them including those in relation to the matters listed in the twelfth schedule (b) The committees with such powers and authority as may be necessary to en....
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....ans any person registered or desirous of obtaining registration under tis Act. Emphasis Supplied. b) A perusal of the above clarifies that scope of the term 'applicant', as defined under sub-Section (c) of Section 95 of the CGST Act shall include both, the person registered under the CGST Act and-also the person who is not registered as on date of applying for the advance ruling, but is desirous of seeking registration under the CGST Act, in the state where advance ruling is sought: c) Further, Section 22 of the CGST Act, specifies the person liable for registration and reads as under: "22, (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States from where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds twenty lakh rupees: . Emphasis Supplied d) The above referred Section can be vivisected into following essentials: a) A supplier shall be liable to be registered under CGST Act in the State or Union Territory, from where he makes taxable supply of goods or services or both; b) If the aggregate turnover in the financial year exceeds rupee....
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....nmental Services Ltd. Nagpur and as per section 97(2) (b) requested for advance ruling on applicability of notification issued vide no. 12/2014 Central Tax (Rate) dated 28.06.2017 For ready reference entry 3 of this notification is reproduced as under; 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 243 G of the constitution. For the purpose of this notification defines Governmental authority and Government entity as under; "Governmental Authority" means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243W of the Constitution or to a Panchayat under article 243 G of the Constitution. "Government Entity" means an authority or a board or any other body including a society, trus....
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....reading of the applicant's application it is seen that there is involvement of GPRS tracking instrument which are fitted to various tankers to track their mobility and substantial value of such instrument is involve in these transaction therefor it is composite supply involving goods. It is not pure services in true sense. The services provided by the applicant is not directly related to function entrusted to the local authority or governmental authority. Water supply for domestic, industrial and commercial purposes. Hence notification is not applicable to the applicant. 05. HEARING Preliminary hearing in the matter was held on 02.04.2019. Sh. Mayur Mahajan, C.A., appeared and requested for admission of their application. Jurisdictional Officer Sh. V. B. Totade, Dy, Commissioner of S.T. (NAG-VAT-E-008) NAGPUR appeared and made written submissions. The application was admitted and called for final hearing on 06.06.2019. Sh. Mayur Mahajan, C.A. appeared and made oral and written submissions. Jurisdictional Officer was not present. We heard both the parties. 06. OBSERVATIONS We have gone through the facts of the case. The issue put before us is in respect of applicability of noti....
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....ia that accepted rate for management of Non-Network Tanker with the help of GPRS system is Rs. 10.30 per Tanker Trip and the contract to provide said services is for two years. On the basis of this work order applicant contends that they are providing GPRS tracking system services report, generated from the tracking instrument mounted on the water tanker and that there is no transfer of any goods to the recipient of service i.e. NECL. In short, applicant submits that the GPRS system is installed for tracking water carrying Tanker and to see that the said Tanker reaches at the designated location and thus, water is supplied to the identified customers. Having due regard to the argument of the applicant and the work order issued by NESL, the recipient we are of the clear view that impugned services qualify as pure service within the description of services at Entry No. 3 of Notification No. 12/2017 dated 28 June, 2017. As a corollary of this finding, the next issue for our consideration in this proceeding is to decide whether the recipient of service is a Central Government/State Government, Local authority or Government authority or a Government entity. Admittedly NESL is not a Cent....
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....ty regarding water supply of Municipal Corporation and rights similarly, movable and immoveable properties related to water supply of Municipal Corporation, it has been decided to handover these to this company. After overall consideration, the Government is taking decision as under: Government's Resolution As per Nagpur city Municipal Corporation Act, 1948, Section 58B thereof, the corporation can implement its duties allotted by the Government, upon these terms/conditions through any body. The approval of the Government is being given as under to establish one independent company to be owned by Nagpur Municipal Corporation, completely, for shouldering the responsibility of Nagpur Water supply Schemes Development, water accumulation, supervision and administration." Accordingly, the Nagpur City Municipal Corporation Act, 1948, has established company in the name of NESL. NMC, Nagpur has entered into a MOU with NESL on 7.09.2009 and allotted the responsibilities for the said works. As per the MOU, the authorized share capital of the company is fixed by the Government. The relevant para pertaining to the setup of the company is as follows: V. a) The authorized Share Capital of....