TaxTMI 
TaxTMI 
2021 (10) TMI 366
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....ws: (i) The applicant has referred to Notification No.12/2017-Central Tax(Rate) dated 28-6-17 and Notification No.12/2017-State Tax(Rate) dated 30-6-17. Both the notifications are similar and read as follows: Sr.No. Chapter, Section, Heading, Group or Service Code (Tariff) Description of Service Rate (percent) Condition (1) (2) (3) (4) (5) 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 or a Government entity 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 article 243W of the Constitution. NIL NIL (ii) The pre-requisite for claiming exemption under the above entry is that it is necessary to provide pure service to the central government, state government or a governmental authority or a governmental entity by way of any activity in relation to any function entrusted to Panchayat under article 243G of the Constitut....
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....tural activities. 22. Markets and fairs. 23. Health and sanitation, including hospitals, primary health centres and dispensaries. 24. Family welfare. 25. Women and child development. 26. Social welfare, including welfare of the handicapped and mentally retarded. 27. Welfare of the weaker sections, and in particular, of the Scheduled Castes and the Scheduled Tribes. 28. Public distribution system. 29. Maintenance of community assets. Article 243W of the Constitution of India has entrusted the following functions to the Municipalities: 1. Urban planning including town planning. 2. Regulation of land-use and construction of buildings. 3. Planning for economic and social development. 4. Roads and bridges. 5. Water supply for domestic, industrial and commercial purposes. 6. Public health, sanitation conservancy and solid waste management. 7. Fire services. 8. Urban forestry, protection of the environment and promotion of ecological aspects. 9. Safeguarding the interests of weaker sections of society, including the handicapped a....
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....rate Office-Chhota Udepur and its subordinate offices. 21. District Education Officer-Chhota Udepur. 22. Depuy Director Agriculture-Chhota Udepur and its offices. 23. Model School-Naswadi(GSTES). 24. Water Resource Development Department, Chhota Udepur and its offices. 25. Government General Hospital, Chhota Udepur. 26. Office of the Assistant Director of Libraries. 27. Shri C H Bhil Govt. Arts and Commerce College. 28. Jilla Samaj Kalyan Adhikari Chhota Udepur. 29. Deputy Conservator of Forests, Chhota Udepur. 30. Prayojna Vahivatdar Office. 5.1 The applicant submits that it is providing only manpower services without supply of any goods, hence the same are pure services. As regards the second condition, the definitions of Central Government or State Government or Local authority or Governmental authority or Government Entity as per the CGST Act, 2017 are as follows: (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, "Government" means the State Government. (iii) "lo....
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....y 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.". 5.2 The applicant submits that on the basis of the above, the various offices to which they supply manpower services can be classified as follows: 1. Collector and District Magistrate Office, Valsad and its subordinate offices-State Government. 2. District Institute of Education and Training, Valsad-Government Authority. 3. Jilla Udyog Center, First floor, Damanganga Bhavan-State Government. 4. Jilla Samaj Kalyan Adhikari niKacheri (VichartiJati) Seva Sadan-2-State Government. 5. District Panchayat Valsad and its subordinate offices-Local authority. 6. District Education Officer-Valsad-State Government. 7. Centre of Excellence for Floriculture and mango-Government Authority. 8. National Highways Authority of India-Government Authority. 9. Water Resource Developm....
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....e services provided for enabling the organization to perform defined functions would also be covered as a reason of usage of words 'in relation to'; that to substantiate this, the applicant would like to refer to the judgement of Doypack Systems(P) ltd. vs. UOI as reported in (1988) 36 ELT 201(SC) wherein it was held that, "the expression 'in relation to' (so also 'pertaining to'), is a very broad expression which presupposes another subject matter. These are words of comprehensiveness which might both have a direct significance as well as an indirect significance depending on the context. It also held that the expression 'in relation to' has been interpreted to the words of widest amplitude." 5.4 The applicant has also placed reliance on the Advance Ruling in the case of A.B. Enterprise vide order No. GUJ/GAAR/R/2020/18 wherein the applicant is engaged in supplying manpower for security and housekeeping to the Central Government, State Government and Local Authority and it is upheld in the AAR that these pure services would be eligible for exemption from payment of tax subject to the condition that the services provided to these entities mentioned above are provided by....
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....enth and the Twelfth Schedule of the Constitution of India, but it extends to every kind of service that results in performance of such functions either directly or indirectly and includes even the services provided for enabling the organization to perform defined functions; that the services provided by the applicant to the various State Government departments and Government authorities/entities are therefore covered and eligible for exemption in light of the fact that they are in relation to functions 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. 7. The applicant has provided photocopies of the following contracts/work orders: (i) F.No. Makam/vashi/25155/2020 dated 16-9-2020 of the Collector office, Chhota Udaipur pertaining to requirement of Class-IV Computer Operators and Drivers through outsourcing agencies. (ii) F.No. Makam/Outsource/Agency/permission/ vashi/ 2021 dated 8-42021 of the Collector Office, Valsad pertaining to requirement of Class-IV Computer Operators, peons and Drivers through outsourcing agencies. ....
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....the District Woman and Child Officer, Valsad regarding filling up of vacancies of Co. operators and peon in the Collector office of Valsad, Office of the Woman and Child Officer-Valsad as well as various mamlatdar offices of Valsad, Pardi, Vapi, Dharampur, Kaprada and Umargam through outsource. (xii) No. SGP/Val/2021-22/68 dated 21-5-2021 of the Librarian, Government District Library, Valsad regarding requirement of sweepers/peons in the Government District Libraries of Valsad, Pardi, Dharampur and Umargam through outsource. (xiii) No. Outsource/Employee/Appointment/Vashi./2021 dated 18-5-2021 of the City Survey Superintendent, Vapi regarding appointment of peons and sweeper through outsource in the office of the City Survey Superintendent, Vapi. (xiv) Letter No. Makam/Outsourcing Peon/822 dated 29-4-2021 of the Town planner, Valsad regarding requirement of computer operator/driver and peon through outsource by the Collector, Valsad's order dated 8-4-2021. (xv) No.RS/Makam/Sevak/AS/651 to 653/2021 dated 27-4-2021 of the Registration Superintendent, Valsad regarding requirement of Class4 peons in his office through outsource. (xvi) No.JP/....
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.... of Driver through outsource. (xxvii) No. Tajar/Val/Makam-1/Outsourcing/04/2021/Vashi dated 20-42021 of the District Treasury Officer, Valsad regarding requirement of peons and sweeper at District Treasury office, Valsad and peons at sub-Treasury office, Valsad through outsource. (xxviii) No.EST/Outsourcing/Vashi-/21 dated 19-4-2021 of the Mamlatdar, Valsad regarding appointment of Computer Operators, peons, driver, water bearer and sweeper in Mamlatdar office, Valsad through outsource. (xxix) Letter No.EST/Outstation/Vashi/2021 dated 19-4-2021 of the Mamlatdar, Pardi to the applicant regarding their appointment as outsource agency by the Collector, Valsad's order dated 8-4-2021. (xxx) No.DMF/Nimnuk/Vashi/356/2021 dated 20-4-2021 of the Member Secretary, District Mineral Foundation and District Planning officer, Valsad regarding requirement of Project Assistants-Accounts and Admin & Assistant IT and Statistics at the District Mineral Foundation office, Valsad through outsource. (xxxi) No.DMF/Nimnuk/Vashi/356/2021 dated 27-4-2021 of the Member Secretary, District Mineral Foundation and District Planning officer, Valsad regarding appointme....
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....s in his office through outsource. (xliii) No. Mahiti/Val/Hisab/906/21 dated 20-4-2021 of the Valsad(R&B) Sub Department, Valsad regarding appointment of Computer Operators, driver and peons in their office through outsource. (xliv) No.TP/Makam/AS/Nimnuk/Vashi/295/2021 dated 20-4-2021 of the Taluka Development Officer, Taluka Panchayat, Umargam regarding requirement of peons in his office through outsource. (xlv) O.No./PB/Vashi/612/2021 dated 7-5-2021 of the Deputy Executive Engineer, Panchayat (R.B.) Sub Division, Pardi regarding appointment of Computer operator, driver and peon in his office through outsource. (xlvi) O.No./EST/659/2021 dated 11-5-2021 of the Deputy Executive Engineer, Panchayat (R.B.) Sub Division, Dharampur regarding appointment of Computer operator, driver and peon in his office through outsource. (xlvii) O.No.JP/Khatav/Vahat/Vashi.78/2021 dated 22-4-2021 of the District Agriculture Department, Jilla Panchayat Valsad, Pardi regarding appointment of driver and peons in the Agriculture Department through outsource. (xlviii) No.JP/PID/Otsource/Vashi/529-30/2021 dated 19-4-2021 of the Executive Engineer, Panchay....
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....tsourcing. (lx) O.No.DOFDPV/EC/100 dated 22-4-2021 of the Deputy Executive Engineer, Damanganga OFD, Sub Department, Pardi regarding appointment of Peon, driver and Co. operator in their office through outsourcing. (lxi) O.No.DCID/EC-1/ dated NIL of the Executive Engineer, Damanganga Canal Inv. Division, Valsad regarding appointment of computer operators, drivers, peons, watchmen in various offices of Vapi, Valsad and Pardi through outsourcing. (lxii) O.No.DCSD/EC/Outsourcing Staff/110 dated 28-4-2021 of the Deputy Executive Engineer, Damanganga Canal Sub Division No.13, Vapi regarding appointment of computer operators, drivers and peon for their office through outsourcing. (lxiii) O.No.DCSD-3/EC-1/1663 dated 15-6-2021 of the Deputy Executive Engineer, Damanganga Canal Sub division No.3, Balitha(Vapi)regarding appointment of computer operator for their office through outsourcing. (lxiv) No.DCSD-3/EC-1/1256 dated 27-4-2021 of the Deputy Executive Engineer, Damanganga Canal Sub division No.3, Balitha(Vapi) regarding appointment of computer operators, peons, drivers for their office through outsourcing. (lxv) O.No.Yopevin-1/EC-158 ....
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....for the office of the Taluka Panchayat, Umargam through outsourcing. (lxxvii) O.No.DDAH/Hisabi/Vashi-1631/2021 dated 30-4-2021 of the Deputy Director of Animal Husbandry, Jilla Panchayat, Valsad regarding requirement of driver for their office through outsourcing. (lxxviii) O.No.Vat Poly/Valsad/794/21 dated 20-4-2021 of the Assistant Director of Animal Husbandry, Intimate Animal Improvement Scheme, Valsad regarding appointment of computer operators, peon and driver for their office through outsourcing. (lxxix) O.No.PDP/63/2021 dated 10-4-2021 of the Veterinary Officer, Veterinary Dispensary, Pardi regarding appointment of Driver and peons in the office of the Animal Dispensary Pardi and Animal Wealth Production Center, Mota Vaghchhipa through outsourcing. (lxxx) O.No.AHB/Sankalp/Outsource/Vashi/1646/2021 dated 30-5-2021 of the Deputy Director of Animal Husbandry, Jilla Panchayat, Valsad regarding requirement of peon for the Animal Treatment Center, Muli through outsourcing. (lxxxi) O.No.DDAH/IPDC/Accounting/494/2021 dated 5-5-2021 of the Deputy Director of Animal Husbandry, Intimate Poultry Development Unit, Chanvai, Valsad regarding req....
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....o/539/2021 dated 22-6-2021 of the Woman and Child Officer, Chhotaudepur regarding requirement of Data Entry Operators for their office through outsourcing. (xciv) O.No.DHJ.chho/Ganga Sva.Yo/539/2021 dated 15-9-2020 of the Woman and Child Officer, Chhotaudepur regarding requirement of Data Entry Operators in their office through outsourcing. (xcv) O.No.DSWO/ET/Outsource/2021-22/3282 dated 5-3-2021 of the District Social Welfare Officer, Chhotaudepur regarding requirement of Junior Clerk in their office through outsourcing. (xcvi) No./Disaser/Vashi/556/2021 dated 22-6-2021 of Mamlatdar Disaster, Chhotaudepur regarding requirement of one driver cum peon in their office through outsourcing. (xcvii) No. Makam/Vashi/2662/2020 dated 19-9-2020 of the Residential Additional Collector, Chhotaudepur regarding requirement of driver for their office through outsourcing. (xcviii) No. Makam/Vashi/413/2021 dated 20-5-2021 of the Mamlatdar, Jetpur Pavi(H) regarding appointment of peon in their office through outsourcing. (xcix) O.No. DCPUC/Outsource/2252/2020 dated 15-9-2020 of the District Child Protection Officer, District Child Protection Uni....
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....ding requirement of peons and sweeper in their office through outsourcing.. (cxii) O.No.Bagat/Nabani/Vahat/ /20 dated 26-8-2020 of the Deputy Horticulture Director, Chhotaudepur regarding appointment of Computer operators, peon cum water bearer and sweeper for their office through outsourcing.. (cxiii) O.No.Bagat/Nabani/Vahat/998/20 dated 15-5-2021 of the Deputy Horticulture Director, Chhotaudepur regarding appointment of Computer operator for their office through outsourcing.. (cxiv) No.Makam/SB/OS Driver/4532/20 dated 31-12-2020 of the Police Superintendent, Chhotaudepur regarding appointment of drivers for their office at M.T.Branch through outsourcing.. (cxv) No.Makam/SB/OS/Class-4/3512/2020 dated 25-9-2020 of the Police Superintendent, Chhotaudepur regarding appointment of peon cum water bearers, sweeper, head cook, mess servant and waterbearer, canal boy and water bearer, Cise, mocha and tailor at the various offices located in Chhotaudepur through outsourcing.. (cxvi) No.CB/Muka/OS/1444/2020 dated 2-9-2020 of the Police Superintendent, Chhotaudepur in connection with the above. (cxvii) No.CB-2/OS/11/2021 dated 1.12.2021 o....
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....-2021 of the Mamlatdar, Jetpur, Pavi regarding appointment of peon in their office through outsourcing. (cxxviii) No.Disaster/1/2021 dated 31-5-2021of Mamlatdar, Sankheda regarding requirement of peon in their office through outsourcing. (cxxix) No.Makam/Vashi/876 to 878/2020 dated 17-9-2020 of the Mamlatdar, Jetpur, Pavi regarding appointment of driver, peon, sweeper, mali and security guard in their office through outsourcing. (cxxx) Contract dated 15-9-2020 of Mamlatdar, Bodeli regarding appointment of computer operator, peon, mali, driver, sweeper, security guard through outsourcing. (cxxxi) No.Makam/Vashi/287 to 290/2020 dated 16-9-2020 of the Mamlatdar, Chhotaudepur regarding appointment of driver, peon, sweeper, compuer operator in their office through outsourcing. (cxxxii) Contract dated 6-7-2021 of Mamlatdar, Naswadi regarding appointment of peon cum driver in their office through outsourcing. (cxxxiii) Contract dated 15-9-2020 of the Mamlatdar, Naswadi regarding appointment of Computer operator, driver, peon, sweeper and security guard in heir office through outsourcing. (cxxxiv) Makam/Vashi/497/2020 dated 28-....
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....r hospital through outsourcing. (cxlviii) Outward No.Hasab/2030/406 dated 15-9-2020 of the Principal of Shri C.H.Bhil Government Arts & Commerce College, Naswadi, Chhotaudepur regarding appointment of watchmen, sweepers and gardener for the said college through outsourcing. (cxlix) O.No.GAC/Vahat/2021/53 dated 12-2-2021 of the Principal, Government Arts College, Kanvat, Chhoteudepur regarding appointment of sweeper for the college through outsourcing. (cl) No.Ref.No.GSCP/294/2021 dated 27-4-2021 of the Principal, Govt. Science College-Pardi, Valsad regarding appointment of peons for their college through outsourcing. (cli) Contract dated 21-1-2021 of the Principal, Government Basic Woman Pedagogic School, Vadodara regarding renewal of services of warden, cook and sweeper and watchman at the school (appointed through outsourcing). (clii) O.No.Diet/Makam/Outsource Appointment/2021-22/1360 dated 204-2021 of the Principal, District Education and Training Institute, Valsad regarding appointment of Computer, peons, water bearer and sweeper through outsource. (cliii) No.GLRS.O.No.13 and GLRS O.No.14 both dated 23-4-2021 of the Principa....
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.... Revenue has neither submitted any comments nor appeared for the hearing. 13. On careful study and examination of all the 155 contracts/work orders presented before us, we categorise the service recipients broadly into four categories: i. Government Schools (refer para 7 Sr.No.cliii to clv) ii. Government Colleges (refer para Sr.No.cxlviii to clii) iii. Government Offices (refer para7 Sr.No.i to cxliv) iv. Government Hospitals (refer para 7 Sr.No.cxlv to cxlvii) Government Schools as Service Recipient 14. We refer to Sr.No.66 (b) to Notification 12/2017 CT (R) dated 28-6-17, reproduced as follows: Sl.No. Chapter Description of Service Rate Condition 66. Heading 9992 Services provided - (a) by an educational institution to its students, faculty and staff; (aa) by an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee; (b) to an educational institution, by way of,- (i) transportation of students, faculty and staff; (ii) catering, including any mid-day meals scheme sponsored by the Central Government, State Government or Union ....
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....ication, for exemption to not only schools but also to all the applicant's cited service recipients. We find no merit in applicant's submission to consider sr no 3 of said Notification in subject matter. 15. Government Colleges as service recipient: We find that the scope of exemption made available at sr no 66(b) to cited Notification 12/2017-CT(R) excludes from its purview Colleges providing education above higher secondary schooling. With no specific exemption for the services provided to these educational institutions, services provided to the following recipients categorised under Government colleges, by the applicant are taxable. On reading of the 155 copies of contracts and work orders submitted by the applicant, the Colleges under this category are as follows: (i) Shri C.H.Bhil Government Arts & Commerce College, Naswadi, Chhotaudepur. (ii) Government Arts College, Kanvat, Chhoteudepur. (iii) Govt. Science College-Pardi, Valsad. (iv) District Education and Training Institute, Valsad, providing training and orientation to school teachers, head masters, heads of school complexes etc. (v) Government Basic Woman Pedagogic Schoo....
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....ces provided to Government offices be exempt from GST, then, that would mean that each and every service provided to/in relation to a Government Office functioning, including each and any service provided to all the Government employees working in that office, whatsoever supply of service, for the employees who function in that office will also be exempted. If Government framed a specific entry (entry 66(b) of NT 12/2017-CT(R)) exempting certain services provided to/in educational institutions, then Government would also have had a specific entry exempting services provided to/in Government offices, if that was the intention of the Government. Now that we do not have any such specific entry, it would not be the correct interpretation of the law to construe that services provided and consumed in Government offices are to be equated as services in relation to panchayat/ Municipality functions. In absence of any specific GST exemption for services consumed within the said offices, we find no merit to consider applicant's submission for GST exemption. We find that the applicant has misconstrued serial number 3 of NT 12/2017-CT(R) to be applicable in subject matter. In conspectus of afo....