TaxTMI 
TaxTMI 
2021 (1) TMI 426
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....ayat, place orders to them for providing/supplying Temporary live videography with LED & LCD Screen, Live Telecast equipment, Cameras, etc.. They have enclosed specimen Work Orders viz. (a) Work Order No. AB/TC/1082 dated 26.04.2017 issued by Office of the Executive Engineer, Baroda Electrical Division, R & B Department, Vadodara and (b) Work Order No. Duda/Vasi dated 28.08.2018 issued by the Collector, Bharuch. 4. The applicant submitted that the illustrative supply of services which constitute hire charges for a consideration, inter-alia, include: (a) Hire Charges for erecting and dismantling of TV with necessary suitable cables as provided on site as per the requirement on Site and as per the direction of Engineer-in-Charge; (b) LED Screen with suitable Iron Platform Structure, back support of Iron H Frames and wiring etc., complete 16 mega pixel Outdoor Screen with a refresh rate of 4800 MHZ or so as per requirement of on Site and as per the direction of Engineer-in-Charge; (c) Hire Charges, for providing, erecting and dismantling of DTH system, having enough size Disc for receiving Digital Signal and Set Top Box, as required for program, with good....
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....ed 28.06.2017? Statement containing the applicant's interpretation of law and/or facts, as the case may be, in respect of aforesaid question(s): 9. The applicant, vide their letter dated 23.01.2019, submitted that as per clause No. 5(f) of the Schedule-II to the CGST Act, 2017, transfer of the right to use any goods, for any purpose (whether or not for a specified period), for cash, deferred payment or other valuable consideration, shall be treated as 'Supply of services'. The services supplied by the applicant, being in the nature of transfer of the right to use any goods for any purpose, for a specified period, fall under the aforesaid clause. 10. The applicant further submitted that they supply the services, viz. Transfer of right to use any goods, for any purpose, for a specified period, to Central Govt., State Govt. or Union Territory or Local Authority or a Governmental Authority, which covered under Sr. No. 3 of the Notification No.12/2017-CT (Rate) dated 28.06.2017. 11. The applicant further submitted that from the List of activities specified under Twelfth Schedule (Article 243-W of the Constitution) and under Eleventh Schedule (Article 243-G of the Constitutio....
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....ever provided services other than the Government. The Applicant application is in respect of classification of services and benefit of the notification No. 12/2017- CGST (Rate) which is to be decided keeping in mind the facts and evidence produced herein. [iii] The work order issued by the State Government clearly provides that the scope of their work is only supply of services and no goods are supplied to the state government. The Applicant have already submitted the scope of their services by its submission dated 23.01.2019 but as a matter of repetition, reiterate as under: (A) The Applicant have been given a work order for providing services to the State Government for live videography of the event of Chief Minister or other ministers and have to erect and dismantle TV sets. The applicant has to lay necessary suitable Cables as per direction of Engineer in Charge on temporary basis at the site. (B) The Applicant have to install LED screens at the venue on Iron Platform structure, back support of Iron H Frames and Wiring etc., with 16 Mega Pixel camera so 4 that large group of people can see the event even seating at distant places at the same venue. ....
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....tion of Services Rate (percent) Condition 3 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 243 G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil [viii] In view of the above referred entry, it is clear that this Notification is application to the service provider, who only provides services and not Undertaking any works contract or other composite supplies involving supply of any goods. The applicant has produced enough material to show that they have provided only services and therefore, applicant is eligible for the benefit of Sr. No. 3 mentioned above. [ix] It is also established that the applicant has provided services to Government of Gujarat or its bodies and, therefore, the applicant is covered under the second limb of Sr. No. 3 that the pure service should be provided to the Central G....
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....all under Schedule XI and XII respectively, which can be verified from the work order itself and, therefore, the eligibility of the Notification No.12/2017- Central Tax dated 28.6.2017 is not in dispute. [xiii] That the Collector Bharuch also issued an order dated 28.08.2018, whereby it is specifically mentioned that in view of the Sr. No. 3 of the Notification, no GST is payable and, therefore, the payment was made to the applicant without deducting GST amount. However, this also clarifies the situation that the applicant is not liable to pay any GST on the activities mentioned in the work order. A copy of the order dated 28.08.2018 is annexed herewith and marked as ANNEXURE-C hereto; [xiv] That this issue is otherwise held in favour of the trade by the different AAR in the case of City and Industrial Development Corporation of Maharashtra Ltd. reported in 2019 (26) GSTL 394 (AAR-GST) = 2019 (6) TMI 1009 - AUTHORITY FOR ADVANCE RULING, MAHARASHTRA & in the case of Sri Roopesh Kumar reported in 2019 (10) TMI 944 - AAR, Karnataka. Both the benches allowed the benefit of the Notification No. 12/2017- Central Tax. The issue involved in both the above referred cases a....
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....2018) by Hon'ble CM at Hostel Ground, Bharuch 905961 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 4 23.01.2020 Providing Temporary LED Screen with Videography, for cultural programme on the eve of 26^th January, 2020 (on 25^th January) by Hon'ble CM at Hostel Ground, Bharuch 259242 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 5 24.04.2018 Providing Temporary Live Videography with LED Screen, for "Sujalam Suflam Jal Yojna" (Lake side) for State level Celebration of "Gujarat Gaurav Din" by Hon'ble CM at Kosambli, Ankleshwar 542389 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 6 24.04.2018 Providing Temporary LED Screen with Videography, for Main Dome, for State level Celebration of "Gujarat Gaurav Din" by Hon'ble CM at Kosamdli, Ankleshwar 808470 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 7 19.05.2018 Providing Temporary Live Videography with LED Screen, for "Sujalam Suflam Jal Abhiyan 2018" by Hon'ble CM at Nani Saran, Tal.-Santrampur, Dist.Mahisagar on 22.....
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....ble CM at Jambughoda Dist., on 27.11.2018 468935 Office of the Executive Engineer, Baroda Electric Division, R&B Department, Vadodara 16.2 The applicant further stated that they have provided "pure services" and thus, not undertaken any works contract or other composite supplies involving supply of any goods. They have provided services to the State Government and its bodies, who undertaken activities in relation to any function entrusted under Article-243G and Article- 243W of the Constitution. Further, they have never provided services to other than the Government. 17. In backdrops of above facts, the applicant has sought the Advance Ruling on the following questions: (i) Whether or not, the aforesaid services fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017? (ii) Whether or not, the Service related to collection of Hire Charges for temporary transfer of right to use goods, from "Central Govt., State Govt. or Union Territory or Local Authority or a Government Authority by way of any activity in relation to any Function entrusted to a Panchayat under Article 243-G of the Constitution or in relat....
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....telecast, videography etc. by using their own instruments/equipment's viz. LED & LCD Screen, Live Telecast equipment, Cameras, etc., at site for various events undertaken by them and after completion of the specific event, all the instruments/ equipment, which are deployed at site, are taken back by them and use for other event. The applicant during the course of supply might also transfer some goods/ undertake the construction activity, for which he recovers consideration for the same as hiring charges from them. Thus, said services are to be construed as supply of services/ goods/ works contract depending upon the nature of contract entered by them or Work Order received by them. 21. In view of the above, we hold that the services provided by the applicant would not fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Service Tax Act, 2017. 22. The next question is to be decided, whether or not, the Service related to collection of Hire Charges for temporary transfer of right to use goods from "Central Govt., State Govt. or Union Territory or Local Authority or a Government Authority by way of any activity in relation to any Function ent....
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....ake Show scheduled on 29th and 30th April, 2018". Therefore, the applicant was also required to supply goods for execution of civil, mechanical structure and electrical work. Hence, this work order will not fall under supply of "pure service", also involving supply of goods. As such, this work order does not satisfy the first condition of "pure service". Further, some of work orders may involve supply of goods and some of work orders may involve services. Further, the applicant has also not produced any evidence which can establish or conclude that the work orders do not involve supply of goods. As such, these work order do not satisfy the first condition of "pure service". 24.2 The second condition to be verified is as to whether the entities mentioned at para 16.1 above are "Central Government" or "State Government" or "Local authority" or "Governmental authority" or "Government Entity". For better appreciation, definitions of the above terms as provided under the CGST Act, 2017 are reproduced herein below: (i) As per Section-2(53) of the CGST, Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the Gujarat GST, Act, 2017, "Gove....
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....ion. (v) (zfa) "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.". 24.2.1 On examination of the details submitted by the applicant as well as taking into consideration the definitions mentioned above, we find that applicant has not provided any evidence to substantiate that these entities satisfy the above conditions. 24.3 The third condition to be verified is whether the services provided to these entities mentioned above, are services provided by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. 24.3.1 For better appreciation, the functions entrusted to the panchayats under Article 243G of the Constitution of India are reprodu....
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....ation. 12. Provision of urban amenities and facilities such as parks, gardens, playgrounds. 13. Promotion of cultural, educational and aesthetic aspects. 14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums. 15. Cattle pounds; prevention of cruelty to animals. 16. Vital statistics including registration of births and deaths. 17. Public amenities including street lighting, parking lots, bus stops and public conveniences. 18. Regulation of slaughter houses and tanneries. 24.4 We find that during the course of discharge of various functions by various entities, different work orders are issued according to which services are provided by the applicant. The scope of work as defined in the Work Orders submitted by the applicant on sample basis do not get covered under any such activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution of India or in relation to any function entrusted to a Municipality under Article 243W of the Constitution of India. Since the applicant, at various stages, enters into different agreements with various authorities ....