TaxTMI 
TaxTMI 
2020 (1) TMI 975
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.... 12/2017 Central Tax (Rate) dated 28.06.2017 (as amended) III. QUESTION(S) ON WHICH ADVANCE RULING IS SOUGHT: Whether the parking lot services provided by the Contractor appointed by the Market Committee, which is a Government Authority is exempt under Notification No. 12/2017 as the parking lot activity is covered under Article 243 of the Constitution. IV. ELIGIBILITY OF THE APPLICATION FOR ADVANCE RULING: The Section 97(2) of the Central Goods and Services Tax Act, 2017, read with Section 97(2) of the Punjab Goods And Services Tax Act, 2017, provides for the issues on which advance ruling can be sought. 97 (2) The question on which the advance ruling is sought under this Act, shall be in respect of- (a) classification of any goods or services or both; (b) applicability of a notification issued under the provisions of this Act; (c) determination of time and value of supply of goods or services or both; (d) admissibility of input tax credit of tax paid or deemed to have been paid; (e) determination of the liability to pay tax on any goods or services or both; (f) whether applicant is required to be registered; (g) whether any particular thing done by t....
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....nd is therefore NIL rated. 6. That they have been employed by the market committee to provide services of parking lot at the place of market committee on their behalf. Thus in a way they act as an agent of the market committee. In the context of the peculiar facts of the case it is clear that they are providing parking lot services as a representative or agent of the market committee. 7. Reliance has been placed on the decision of the Hon'ble Supreme court though in different context in Larsen And Toubro Limited and Anr. vs State of Andhra Pradesh And Ors. 8. In view of the above facts it would be irrational to say that whenever the market committee provides parking lot services directly the same is exempt and whenever it provides through an agent the same is taxable and such an interpretation would not only defeat the very purpose of exempting market committee services but would also be violative of Article 14 of the Constitution of India. 9. That the market Committee (Mandi Board) primarily deals with the activities relating to agricultural produce. The maintenance of parking lots at Market Committee's place to facilitate the agriculture should also be considered as part of ....
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.... agricultural produce so notified from agricultural, horticulture, animal husbandry and forest produce. The Punjab Agriculture produce is being regulated under the Punjab Agriculture Produce Markets Act, 1961. The preamble of the act is "An act to consolidate and amend the law relating to the better regulation of the purchase, sale, storage and processing of Agricultural produce and the establishment of the markets for Agricultural produces in the state of Punjab". The primary object of Punjab Mandi Board and Market Committees is to establish modern Markets for efficient marketing of agricultural produce by providing modern facilities in the mandis and to enforce the provisions of the Act, Rules Bye-laws framed there under. Punjab State Agricultural Marketing Board is a body corporate as well as a local authority by the name of the State Agricultural Marketing Board, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire and hold property and shall by the said name sue and be sued. The Board may from time to time direct these market committees to control and regulate the admission to the markets. Market Committees are service re....
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....or outside the precincts of an airport or a port, the service recipients are required to pay the tax under reverse charge mechanism. 3. What is the meaning of 'Government' ? Ans: As per section 2(53) of the CGST Act, 2017, 'Government' means the Central Government. As per clause (23) of section 3 of the General Clauses Act. 1897 the 'Government' includes both the Central Government and any State Government. As per clause (8) of section 3 of the said Act, the 'Central Government', in relation to anything done or to be done after the commencement of the Constitution, means the President. As per Article 53 of the Constitution, the executive power of the Union shall be vested in the President and shall be exercised by him either directly or indirectly through officers subordinate to him in accordance with the Constitution. Further, in terms of Article 77 of the Constitution, all executive actions of the Government of India shall he expressed to be taken in the name of the President. Therefore, the Central Government means the President and the officers subordinate to him while exercising the executive powers of the Union vested in the President and in the name of the President. S....
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....Act. Examples of such developmental authorities are Delhi Development Authority. Ahmedabad Development Authority, Bangalore Development Authority, Chennai Metropolitan Development Authority, Bihar Industrial Area Development Authority, etc. Such developmental authorities formed under the Town and Planning Act are not qualified as local authorities for the purposes of the GST Acts. 6. Would a statutory body, corporation or an authority constituted under an Act passed by the Parliament or any of the State Legislatures be regarded as 'Government or "local authority' for the purposes of the GST Acts? Ans: A statutory body, corporation or an authority created by the Parliament or a State Legislature is neither 'Government' nor a 'local authority' Such statutory bodies, corporations or authorities are normally created by the Parliament or a Stale Legislature in exercise of the powers conferred under article 53(3)(b) and article of the Constitution respectively. It is a settled position of law (Agarwal Vs. Hindustan Steel AIR 1970 Supreme Court 1150 = 1969 (12) TMI 109 - SUPREME COURT) that the manpower of such statutory authorities or bodies do not become officers subordinate to th....
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....ch conditions as may be specified therein, with respect to (i) the preparation of plans for economic development and social justice; (ii) the performance of 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 enable them to carry out the responsibilities conferred upon them including those in relation to the matters listed in the Twelfth Schedule 5. Hence according to 243Q of the Constitution of India, only Nagar Panchayats, Municipal Councils and Municipal Corporations are considered as Municipalities. However, in certain urban areas, called industrial townships, an industrial establishment may provide municipal services and a municipality may not be constituted in that urban area. Further, in view of the above legal provisions and as clarified by the FAQ's issued in respect of government services, the Mandi Board does not fall under the definition of local authority. A definition has to be read in its fulfilment and not in parts or out of context to suit a particular purpose. 6. The functions of Mandi Boa....
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....ing lot services at the place of Market Committee at Jalandhar for an amount of Rs. 2,72,97,000/- and the applicant is to recover the said amount by charging the vehicles entering the Market Committee area on rates ranging from Rs. 10/- for a two wheeler to Rs. 150/- for a Trolla, as fixed by the Market Committee. Thus, the Market Committee is earning revenue from the persons entering the parking area. 8. Moreover, it has been consistently held that any statutory authority which works on business principals, the fees collected by it cannot be considered as statutory fee. Only in case where the fee is collected towards sovereign functions and deposited with the Government revenue qualify to be outside the levy of any tax. Collection of parking fees by the Market Committee from the people entering their premises or area does not fall under the definition of sovereign functions. Sovereign functions of the State are those functions for which it is not answerable to any Court of Law. What is approved to be "Sovereign" is defence of the country, raising armed forces, making peace or war, foreign affairs, power to acquire and retain territory. These are not amenable to the jurisdiction o....