TaxTMI 
TaxTMI 
TaxTMI 
2021 (10) TMI 52
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.... there is no transfer of effective control and possession of equipments given on hire basis to the Government Department at any point of time. The appellant receives consideration in the form of 'Hire Charges' from the Government Department against the service provided by way of renting of equipment for cultural and social events. Once the event is complete, all the equipments deployed at the event sites are required to be dismantled and brought back by the staff of the appellant. 2. The appellant filed an application before the Gujarat Authority for Advance Ruling (hereinafter referred to as the 'GAAR') and raised the following questions for advance ruling - (i) : Whether or not, the aforesaid services fall under the scope of clause 5 (f) of the Schedule II to the Central Goods and Services 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 relation to any function entrusted to a ....
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....contract service or composite supply involving goods. 6.1 The appellant has further submitted that the Road & Building Department is a department of the Government of Gujarat and hence it is covered within the definition of the State Government. It has further been submitted that any State government is supposed to carry out function entrusted upon it by the Constitution of India, therefore, it cannot be, even vaguely said that any State Government is not carrying out functions entrusted upon it by the Constitution of India. 6.2 As regards the work allotted by the "Zilla Saheri Vikas Yojana, Bharuch (District Urban Development Agency - DUDA)", the appellant has submitted that the Work Order dated 28.08.2018 states that it is an agency of the Government hence Goods and Services Tax is not applicable on the said transaction. It has also been submitted that the service given to "Zilla Saheri Vikas Yojana, Bharuch" also falls within the meaning of 'pure service'. 7. The appellant has analysed the type of event or programme held by the Government and the purpose behind organizing the same and has submitted summary of the same showing relevant entry of Eleventh or Twelfth Schedule of ....
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.... of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. Nil Nil 12.1 It is apparent that the aforesaid exemption under Sl. No. 3 of Notification No. 12/2017-Central Tax (Rate) is admissible only in case of 'Pure Services' excluding 'works contract service' or other 'composite supplies' involving supply of any goods. 12.2 As submitted by the appellant, the activities being carried out involves erection and dismantling of TV sets along with cables; installation of LED and LCD screens at the venue on iron platform structure, back support of iron H frames and wiring etc., with 16 pitch resolution; to run DTH system with enough size disc for proper digital signal and Set-Top box. The erection and installation is done on a temporary basis, no permanent infrastructure is constructed and once the event is complete, all the equipments are to be dismantled and taken back by the appellant which may be used for another event as per the work schedule. The appellant receives consideration in the form of 'Hire Charges' towards the aforesaid s....
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....oned in the Work Order itself that it is an agency of Government. It appears that the District Urban Development Agency, Bharuch is a Governmental authority or a Government Entity, though it has not been specifically mentioned so by the appellant. 14.1 In order to substantiate the claim that the services provided by the appellant are by way of any activity in relation to any function entrusted to a Panchayat under Article 243G of the Constitution or in relation to any function entrusted to a Municipality under Artcile 243W of the Constitution, the appellant has analyzed the type of events or programmes held by the Government, purpose behind organizing such events or programmes by the Government and identified relevant entry of Eleventh Schedule or Twelfth Schedule of the Constitution under which such events or programmes may fall. 14.2 However, we are concerned with the issue whether the service of 'providing equipments on hire' for 'live videography' of the appellant can be termed to be services by way of any activity in relation to any function entrusted to a Panchayat or a Municipality under Article 243G or Article 243W of the Constitution, rather than the nature of events or ....