2020 (1) TMI 1429
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....sh (GoUP), in exercise of powers vested under Section 30 of The Electricity Act, 2003 vide notification No.2974(1)/24-P-2-2010 Dated 23 December 2010 notified them as the state transmission utility of Uttar Pradesh. 3) It has also been informed by the applicant that they have been incorporated with the main objective to acquire, establish, construct, take over, erect, lay, operate, run, manage, hire, lease, buy, sell, maintain, enlarge, alter, renovate, modernize, work and use electrical transmission lines and/or network through extra high voltage, high voltage and associated sub-stations, cables, Mires, telecommunication and connected with transmission ancillary services, telemetering equipment in the State of Uttar Pradesh. 4) The Applicant has submitted application for Advance Ruling dated 22.10.2019 enclosing duly filled Form ARA-01(the application form for Advance Ruling) along with its annexures and attachments. 5) The Applicant in his aforesaid application sought clarification and Advance Ruling as follows : - I. Whether Uttar Pradesh Power Transmission Corporation Limited is covered under the definition of the term 'Government Entity' as per Notification No. 31....
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.... are those as assigned by State of Uttar Pradesh, which are as under:- i. To acquire, establish, construct, take over, erect, lay, operate, run, manage, hire, lease, buy, sell, maintain, enlarge, alter, renovate, modernize, work and use electrical transmission lines and/or network through extra high voltage, high voltage and associated sub-stations, cables, wires, connected with transmission ancillary services, telecommunication and telemetering equipment in the State of U.P. and elsewhere. To undertake, for and on behalf of others the erection, operation, maintenance, management of extra high voltage, high voltage transmission lines and associated sub-stations, equipment, apparatus, cables and wires. ii. To execute agreements for transmission of power to distribution companies and other persons and to coordinate, aid and advise on the activities of other companies and concerns, including subsidiaries, associates and affiliates engaged in transmission of wheeling of electrical energy. iii. To undertake the functioning of State Load Dispatch Centre in terms of Electricity Act, 2003. iv. To schedule and dispatch generation of all units connected to the State power system in....
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....T Act. Further to the earlier, henceforth for the purposes of this Advance Ruling, a reference to such a similar provision under the CGST Act / UPGST Act would be mentioned as being under the 'CGST Act'. 10). We have gone through the submissions made by the applicant and have examined the explanation submitted by them. At the outset, we find chat the issue raised in the application is squarely covered under Section 97(2)(b) of the CGST Act 2017 being a matter related to applicability of a notification issued under the provisions of this Act. We therefore, admit the application for consideration on merits. 11). We have gone through the submissions made by the applicant and examined the detailed explanation submitted by them. We observe that the question sought by the applicant is- I. Whether Uttar Pradesh Power Transmission Corporation Limited is covered under the definition of the term 'Government Entity' as per Notification No. 31/2017 - Central Tax (Rate) dated 13 October 2017. 12) As regard to the term 'Government Entity', we observe that the same has been defined in the Notification No. 11/2017-Central Tax (Rate) dated 28th June 2017, as amended by ....
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....the State Government to give effect to the objects and purposes of this Act, is published or such further date as may be stipulated by the State Government (hereafter in this Part referred to as the effective date), any property, interest in property, rights and liabilities which immediately before the effective date belonged to the State Electricity Board (hereinafter referred to as the Board) shall vest in the State Government on such terms as may be agreed between the State Government and the Board. (2) Any property, interest in property, rights and liabilities vested in the State Government under sub-section (1) shall be re-vested by the State Government in a Government company or in a company or companies, in accordance with the transfer scheme so published along with such other property, interest in property, rights and liabilities of the State Government as may be stipulated in such scheme, on such terms and conditions as may be agreed between the State Government and such company or companies being State Transmission Utility or generating company or transmission licensee or distribution licensee, as the case may be : Provided that the transfer value of any assets transf....
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....l is held by the Government. In the instant case, direct equity held by the Government in M/s. UPPTCL is 83.72% and remaining 16.28 % is held indirectly by the Government through a company in which 100% equity is held by the Government. Another situation envisaged by the Notification No. 11/2017- Central Tax (Rate) dated 28th June 2017 (as amended) is the "control" held by the Government. In this regard, the applicant, vide their letter dated 15.01.2020, has informed that the Board of Directors, Chairman of M/s. UPPTCL are appointed by the Government of Uttar Pradesh, which shows that the control in M/s. UPPTCL is held by the Government. In view of this, we are of opinion that although 90% equity in M/s. UPPTCL is not directly held by the Government (16.28% hold through another Government company), even then the Government holds control over M/s. UPPTCL due to the reason that the Board of Directors, Chairman of M/s. UPPTCL are directly appointed by the Government of Uttar Pradesh. Accordingly, we observe that the applicant fulfills the condition "established by any Government with 90 percent or more participation by way of equity or control" as given in the Notification No. 11/2017....