AI Drafter 
TaxTMI 
TaxTMI 
TaxTMI 
2020 (4) TMI 599
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....ttention and investments in the poorer communities and backward areas. Through this work experience FPI has found that the weaker sections and the backward communities are the worst victim of any disaster, natural or otherwise. However, they are the first, and the most optimistically energetic group ready to recover. When they receive encouragement and support the poorer among the victims almost turn the losses and deprivation into an opportunity. Therefore, if the relief and reconstruction join with the local initiative, the recovery and growth sprouts. The process of disaster management and the impact of mitigation efforts should be organized around the local recovery efforts. In FPI's work experience - may it be to develop local fodder security system for arid areas or mitigating the impact of drought on widows or help reach credit for reconstruction for the victims of food or help accelerate rehabilitation of displaced households - FPI is trying to tie-up with the philanthropic tradition of Gujarat where the victims are the leaders of relief and reconstruction in the short run, and in the long run, they are the ones to plan disaster preparedness and mitigation measures....
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.... government bodies. (i) To offer direct technical assistance, resources, leadership, training and information services to community groups as well as local elected and appointed administration. The applicant conducts research and analysis activities related to disaster and relief management. This is done directly or by supporting such efforts led by others. (j) As an educational resource the applicant aims to act as a bridge linking the faculty and the resources of various institutes involved in relief studies, disaster management, relief administration and advocacy with individual groups or local bodies, eager to advance the community development process as part of disaster management. The applicant offers leadership training and internship program. 4. It is respectfully submitted that the aforementioned objectives of the applicant show that it is primarily established for the purposes of prevention, mitigation and management of any disaster and all the other objectives are also ancillary to such purposes. 5. The functions and activities which have also been defined in the Memorandum of Association are also for the purpose of achievement of the objectives s....
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.... State/Central Government, international development authorities or agencies and other local bodies, (vii) Income from publications or audio-visual material or sales of other such items. " 8. The applicant may further point out that if any surplus arises from the receipts then the same is ploughed back into the corpus for the purpose of achievement of the objectives of the applicant. Registered under Section 12AA as well as under Section 80G of the Income Tax Act: 9. The applicant may further point out that it is registered as a charitable trust under Section 12AA of the Income Tax Act, 1961 (herein after referred to as "the Income Tax Act") as well as under Section 80G of the Income Tax Act. In other words while the entire income of the applicant is exempt from income tax, even the donations made to the applicant are admissible deductions for the donors under Section 80G of the Income Tax Act. The Applicant has furnished the copy of the Certificates issued to the applicant under the Income Tax Act. Cumulative reading of the facts of the applicant show that the applicant is not engaged in any business: 10. In the respectful submission of the applicant a cumu....
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....arity of such transaction; (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; (e) provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; (g) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation; (h) services provided by a race club by way of totalisator or a licence to book maker in such club ; and (i) any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities; " 14. Thus while the term "business" has been elaborately defined, except for a few activities which have been specifically incorporated, the activity should be in the nature of trade, commerce, manufacture, profession, vocation, adventure or similar activity in order to qualify as "business". 15. It is respectfully submitted that since....
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....merce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture and any transaction in connection with or incidental or ancillary to the commencement or closure of such trade, commerce, manufacture, adventure or concern. If the main activity is not business, then any transaction incidental or ancillary would not normally amount to "business" unless an independent intention to carry on "business" in the incidental or ancillary activity is established. In such cases, the onus of proof of an independent intention to carry on "business" connected with or incidental or ancillary sales will rest on the department. Thus, if the main activity of a person is not trade, commerce, etc., ordinarily incidental or ancillary activity may not come within the meaning of "business". 17. It is respectfully submitted that even in the case of the applicant the applicant does not have any intention of carrying out any "business". The applicant is a charitable trust established for activities relating to disaster prevention, mitigation and management. All the contracts which are entered into by the applicant are for the achievement of such objectives. In fact majority ....
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.... v/s State of Uttarakhand and Another 42 VST 530 (Uttara.) = 2014 (6) TMI 793 - UTTARANCHAL HIGH COURT: The petitioner was a school. Food was given by the petitioner to students residing in a hostel. It was held by Hon. Uttarakhand High Court that the primary and dominant activity of the petitioner was to impart education. This main activity did not amount to commercial activity or business. Supply of foodstuff to residential students was an incidental activity to the main activity and since the main activity was not business the incidental activity was also not business. Hon. High Court concluded that the petitioner was not covered within the meaning of the word "dealer" as defined in the Uttarakhand Value Added Tax Act, 2005. (vi) Sri Velur Devsthanam Vaitheeswaran Koil Dharmapuram Adhinam v/s State of Tamil Nadu 53 VST 235 (Mad.) = 2014 (5) TMI 497 - MADRAS HIGH COURT: The Petitioner was constituted for maintenance of the main temple, shrines and minor temples attached thereto and charities and endowments thereof. Ornaments were donated by devotees to the temple which were sold off. It was held that the petitioner was not carrying trade, commerce, etc. The conduct of sa....
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....activities" means activities relating to - (i) to (iii) xxxxx (iv) preservation of environment including watershed, forests and wildlife; 21. It is respectfully submitted that the applicant is duly registered under Section 12AA of the Income Tax Act, 1961 and the activities of the applicant relating to disaster prevention, disaster mitigation and disaster management are activities relating to preservation of environment. Hence the activities of the applicant are in any case charitable activities exempt from tax under the GST Acts. 22. Definition of the term "environment" as contained in different dictionaries is as under: (a) Oxford online dictionary: (1) The surroundings or conditions in which a person, animal, or plant lives or operates. (2) The natural world, as a whole or in a particular geographical area, especially as affected by human activity. (b) Merriam Webster online dictionary-: (1) the circumstances, objects, or conditions by which one is surrounded; (2) (a) the complex of physical, chemical, and biotic factors (such as climate, soil, and living things) that act upon an organism or an ecologi....
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....s or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act; (b) xxxx." 27. It is respectfully submitted that without prejudice to the submission of the applicant that it is not engaged in business and therefore its transactions not being "supply" as defined there is no requirement of registration under the GST Acts, in any case the activities of the applicant qualify as services by way of charitable activities or services to Government/Government authorities which are exempt from tax under the GST Acts and the applicant being in the business of exclusively supplying services which are exempt from tax, the applicant is not required to take registration by virtue of Section 23(1 )(a) of the GST Acts. DISCLAIMER 28. The applicant says that above question posed for advance ruling is neither pending nor decided in any proceedings in the case of the applicant under any of the provisions of the GST Acts. Discussion and findings: 29. We have considered the submissions made by the applicant in their application, and at the time of personal hearing. Jurisdictional Authority has not furni....