TaxTMI 
TaxTMI 
TaxTMI 
2022 (5) TMI 403
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....ustrial Area, Jaipur (hereinafter also referred to as 'the appellant') against the Advance Ruling No. RAJ/AAR/2021-22/11 dated 06.09.2021 3. Appellant is a Company registered under the Companies Act, 1956 and registered with Registrar of Companies as "Consulting Engineering Group Limited" vide CIN: U74140RJ1991PLC006329 with its Registered Office at 7th Floor, B-11(G), Industrial Area, Malviya Nagar, Jaipur-302017 vide GSTIN 08AAACC751981ZO, having its Principal place of Business at 7th Floor, 8-11(G), Industrial Area, Malviya Nagar, Jaipur-302017. A contract under Rajasthan Secondary Towns Development Sector Project (RSTDSP), (herein after called "project") has been awarded by Rajasthan Urban Drinking Water Sewerage & Infrastructure Corporation Limited (hereinafter referred to as RUDSICO) to a Joint venture consisting of the following entities, each member of which will be jointly and severally liable to the client (i.e. RUDSICO) for all the consultant's obligation under this contract namely Haskoning DHV consulting Pvt.Ltd., Haskoning DHV Nederland B. V. and Consulting Engineers group Ltd. Rajasthan Secondary Towns Development Sector Project (RSTDSP) will invest in t....
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....the Project Management Consultancy services provided to Rajasthan Urban Drinking Water Sewerage and Infrastructure Corporation for Rajasthan Secondary Towns Development Sector Project can be termed as 'Pure Services' as referred in Entry No. 3 Notification No. 12/2017 - Central Tax (Rate) Dated 28/06/2017 and accordingly eligible for exemption from Central Goods and Service Tax and Rajasthan Goods and Service Tax, irrespective of the invoice being raised by the appellant to the Lead Member and not to the Service receiver i.e. RUDSICO. Question on which the Advance Ruling was sought, is as under: Whether the 'Project Management Consultancy' services provided to Rajasthan Urban Drinking Water Sewerage and Infrastructure Corporation (RUDSICO) under Rajasthan Secondary Towns Development Sector Project, where Invoice is raised by the Applicant to the Lead Member, who further raise invoice to RUDSICO of consolidated amount, can be termed as 'Pure Services' as referred in Sl. No. 3 - (Chapter 99) of Table mentioned in Notification No. 12/2017 - Central Tax (Rate) Dated 28/06/2017 and accordingly eligible for exemption from Central Goods and Service Tax and State....
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.... the Government of Rajasthan holds more than 90% of the Equity Control in RUDSICO, through: S.No. Name of Shareholder No Shares Amt per share Share capital in Rupee Percentage Holding 1. Government of Rajasthan through H.E. the Governor of Rajasthan 40991693 10 409916930 99.99% 2. Rajasthan Housing Board (RHB) 3916403 10 39164030 3. Jaipur Development Authority 3760800 10 37608000 4. Others 1099 10 10990 0.01% TOTAL 48669995 10 486699950 6.1.3 Appellant further submitted that Rajasthan Housing Board (RHB) and Jaipur Development Authority are also Government entities having more than 90% holding of Government of Rajasthan, as under: Rajasthan Housing Board (RHB) The Rajasthan Housing Board was established on 24th Feb, 1970 by promulgation of an RHB Act No. 4, of 1970 (received the assent of The Governor on the 18th day of April, 1970) by the Government of Rajasthan as an autonomous body to provide for measures to be taken to deal with & satisfy the need of Housing accommodation in State of Rajasthan. The Board consist of a chairman, appointed by The State Government and of six non official members, nominated by The Government ....
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....in Rajasthan. * To set up a Central Urban Data Center for collecting and updating of all information relating to urban development and urban Infrastructure for the urban areas of the state. * To act as nodal agency for implementation of affordable housing policy/scheme 2009 and as amended from time to time by the Government of Rajasthan. * To Plan, design, develop, construct, maintain, and manage the finance and to make or arrange all the works/Jobs/Services including incidental and ancillary for infrastructure development, housing, public utility services and all other works related to the construction. 6.2.3 Appellant submitted that RUDSICO is a State Level Nodal Agency, entrusted with the development objectives of the state of Rajasthan and is held by the Government of Rajasthan. 1. All the Official Authorized Documents as well as its official website, mentions RUDSICO as 'a Government of Rajasthan Undertaking' 2. The introductory para on the official website of RUDSICO reads as under: Rajasthan Urban Drinking Water Sewerage and Infrastructure Corporation Limited (erstwhile Rajasthan Urban Infrastructure Finance and Development Corporation Limited) is a Gove....
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....al hearing in the matter was held on 17.11.2021. Mrs. Ritika Rajvanshi, CA and Authorized Representative of the appellant attended the hearing on 17.11.2021. She reiterated the submissions already made under grounds of appeal. DISCUSSION AND FINDINGS: 8.1 We have carefully gone through the Appeal papers filed by the Appellant, the Ruling of the AAR, Rajasthan, written as well as oral submissions made by the authorized representative(s) of the appellant, at the time of personal hearing held on 17.11.2021. 8.2 Appellant observed that they are entitled to the notification No. 12/2017 Central Tax rate. The relevant portion of the Notification No. 12/2017 -Central Tax (Rate) dated 28/06/2017 is reproduced as under: "In exercise of the powers conferred by sub-section (1) of section 11 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on being satisfied that it is necessary in the public interest so to do, on the recommendations of the Council, hereby exempts the intra-State supply of services of description as specified in column (3) of the Table below from so much of the central tax leviable thereon under sub-section (1) of section 9 of the said ....
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....n. 8.2.3 As submitted by the appellant, total authorized capital of RUDSICO is Rs. 50 crores and the paid-up capital is Rs. 48.67 crore. Appellant has further submitted the bifurcation of paid-up capital which is reproduced as under:- S.No. Name of Shareholder No Shares Amt per share Share capital in Rupee Percentage Holding 1. Government of Rajasthan through H.E. the Governor of Rajasthan 40991693 10 409916930 99.99% 2. Rajasthan Housing Board (RHB) 3916403 10 39164030 3. Jaipur Development Authority 3760800 10 37608000 4. Others 1099 10 10990 0.01% TOTAL 48669995 10 486699950 8.2.4 We find that out of total paid up capital of Rs. 48.67 Crore, only Rs. 40.99 Crore holding is with Government of Rajasthan through H.E. governor of Rajasthan, which is less than 90%. The appellant main contention is that the Rajasthan Housing board and Jaipur Development Authority are also Government entities as both have 90% holding of Rajasthan government. In this regard, our opinion is that to satisfy as Government authority more than 90% holding of equity should be with only "Government" not with any other entity established by the Government. A....