TaxTMI 
TaxTMI 
2022 (3) TMI 1302
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....nder Chapter XVII of the Act shall be binding only (a). On the applicant who had sought it in respect of any matter referred to in subsection (2) of Section 97 for advance ruling; (b). On the concerned officer or the jurisdictional officer in respect of the applicant. 3. Under Section 103 (2) of the Act, this advance ruling shall be binding unless the law, facts or circumstances supporting the said advance ruling have changed. 4. Under Section 104(1) of the Act, where the Appellate Authority finds that advance ruling pronounced by it under sub-section (1) of Section 101 has been obtained by the appellant by fraud or suppression of material facts or misrepresentation of facts, it may, by order, declare such ruling to be void ab-initio and thereupon all the provisions of this Act or the rules made thereunder shall apply to the appellant as if such advance ruling has never been made. At the outset, we would like to make it clear that the provisions of both the Central Goods and Service Tax Act and the Tamil Nadu Goods and Service Tax Act are the same except for certain provisions. Therefore, unless a mention is specifically made to such dissimilar provisions....
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.... of Limitation has clarified that the Order of Supreme Court shall be applicable for applications before 'Appellate authority for Advance Ruling'; Supreme Court vide its Order dated 23 September 2021 had withdrawn the order with the direction that 'notwithstanding the actual balance period of limitation remaining, all persons shall have a limitation period of 90 days from 03.10.2021'. Therefore, the appeal is filed within the prescribed timelines mentioned in law. 4.2 On merits of the issue, the grounds of appeal are as follows:- • 4 conditions are required to be fulfilled for the compliance of the notification 11/2017;- • Supply must be a composite supply of works contract as defined in Clause 119 of Section 2 of CGST Act, 2017 (effective from 14.11.2017, when the words 'Services provided' stands amended as 'Composite supply of works contract as defined in Section 2 (119) of CGST Act 2017 provided). • Supplies must be provided to the Central Government or State Government or Union Territory, a local authority, a Governmental authority or a Government entity. • Supply must be by way of construction, erection, commissioning, ins....
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....ind effect and modification of elevation in TNEB headquarters building which is required for providing services of generation and transmission of electricity. • The LA had mentioned that TANGEDCO recovers charges for electricity and thus it is engaged in the business of sale of electricity and therefore failed to fulfill the condition. LA has not appreciated the said fact while examining the eligibility of condition and thus the order of the LA needs to be set aside on this ground. Condition 4 - In the case of supplies to a Government Entity, there is a condition prescribed in proviso that the supplies should have been procured by the said Government entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be. • The condition prescribed is applicable only for Government entity wherein the supplies should have been procured by the said entity in relation to a work entrusted by Central Government or State Government. The impugned ruling of the Advance Authority vide para 8 is not in accordance to the settled principle of law. The LA has misread the provisions of the....
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....17 is not at all sustainable in law. • Without prejudice to the above, they had submitted that TANGEDCO vide its letter CFC/GL/ACCTS/DRCIAO/TAX/EGST/D.No 22/2019 dated 25.04.2019 has clarified that the works contract service provided to TANGEDCO attracts lower rate of tax in terms of aforesaid entry. Vide issuing the aforesaid letter TANGEDCO has sought clarification from State Government vide letter no. Energy (B2) Dept Ltr 4155/B2/2018/dated 25.03.2019. • Supreme court in the case of LLOYD ELECTRIC AND ENGINEERING LIMITED VERSUS STATE OF HIMACHAL PRADESH AND OTHERS 2015 (9) TMI 370 -SUPREME COURT has held the State Government cannot speak in two voice. The Hon'ble Apex Court has held that "...........The State Government is bound by the policy decision taken by the Council of Ministers and duly notified by the Department concerned, viz., Department of Industries." The aforesaid principle has also been followed in the case of VADILAL CHEMICALS LTD. VERSUS STATE OF ANDHRA PRADESH 2005 (8) TMI 121 - SUPREME COURT • In the present case, while State Government has been stating that all activities carried out for TANGEDCO is eligible for exemption....
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....commerce. • Submitted copy of TANGEDCO letter CFC/GL/ACCTS/DRCIAO/TAX/ EGST/D.No 22/2019 dated 25.04.2019. • Copies of the following case laws of Supreme court:- i. Commissioner of LT vs Sutlej Cotton mills supply agency (SC) 1975 (100) ITR 706(SC) ii. Commissioner of I.T Madras Vs PKN company (SC) 1966 (60) ITR 65(SC) iii. Rajputana textiles vs The Commissioner of LT 1961 (42) ITR 743(SC) iv. collector of central excise vs Rajasthan State Chemical Works) 1991 (55) E.L.T. 444 (S.C.)] v. Lloyd Electric and Engineering Limited versus State of Himachal Pradesh and others 2015 (9) TMI 370 - supreme court Discussion and Findings: 7. We have gone through the entire facts of the case, documents placed on record, Order of the Lower Authority & submissions made by the appellant before us. The appeal is against the Order No. 08/ARA/2021 dated 25.03.2021 and is filed beyond the statutory period for filing appeal as per Section 100 of the GST Act. The appellant citing CBIC Circular dated 20th July 2021 on applicability of timelines for filing of the appeal and Order of Hon'ble Supreme Court dated 23rd September 2021 i....
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....aintenance, renovation, or alteration of- (a) a civil structure or any other original works meant predominantly for use other than for commerce, industry, or any other business or profession; 6 Provided that where the services are supplied to a Government Entity, they should have been procured by the said entity in relation to a work entrusted to it by the Central Government, State Government, Union territory or local authority, as the case may be From the above, it is evident that the entry is available when the Composite supply of Works contract are made to 'Government entity' by way of fitting out, renovation or alteration of a civil structure or any other original works meant predominantly for use other than for commerce, industry or any other business or profession and when such supply is made to a 'Government entity', they should have been procured in relation to a work entrusted to it by the Central/State Government or the Local Authority as the case maybe. 9.1 The appellant contends that they have satisfied the condition at (3) i.e., the supply was made for use other than for business or commerce, in as much as,- • TANGEDCO is a public utility co....
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....l Government, State Government or any local authority' and is not applicable to the case at hand as TANGEDCO is not a State Government or any local authority but a Government entity. The said Explanation is as under:- Explanation.- For the purposes of this item, the term 'business' shall not include any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.". 9.4 In the case at hand, the works are undertaken by the appellant to the Headquarters of TANGEDCO Ltd, a commercial company in as much as TANGEDCO is involved in Generation and Distribution of Electricity against fixed Tariff. The words of the entry is clear and excludes the works supplied to Government entity, in respect of a Civil Structure or any other original works meant predominantly for commerce, industry or any other business or profession. Therefore, we don't find any reason to disagree with the findings of the LA that the supply cannot be considered as that meant predominantly for use other than commerce, industry, or any other business or professional purposes. 10.1 The appellant has further contended th....
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....ation issued by the State Government and the stand held by the LA and the claim that the State Government cannot speak in two voice is void. Based on the clarification received from the Government to the status that TANGEDCO is a Government Entity, the Finance Director has addressed, the Chief Engineers & others to take action to absorb the benefits of GST concessions to 'Government entity', which is their own interpretations and not clarification of the State Government and therefore, this contention fails. 10.3 The appellant relying on the decision in the case of CCE Vs. Rajasthan State Chemical Works, has stated that the phrase 'in relation to' is to be given a wide connotation and therefore the work undertaken by them to the TANGEDCO Headquarters should be considered as works in relation to the work entrusted to TANGEDCO. In the cited decision, the Apex Court has considered 'what activity amounts to process in or in relation to manufacture' and has held that processing of the raw materials even though are stages prior to the commencement of manufacture, are process in relation to manufacture, since they are integral to 'manufacture'. In the present case, TANGEDCO is establis....