AI Drafter 
TaxTMI 
TaxTMI 
2022 (5) TMI 1072
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....gime. 3. The appellant has stated that on formation of Gujarat State on 01.05.1960, a department named Education and labour department came into existence and social welfare, labour, prohibition, excise and employment were included in Education Department and later subjects were gradually taken away from the Education and Labour Department on administrative grounds; that since August, 1976, Education Department came into existence as separate secretariat department, which looks after education including primary education, continuous education, literacy education, secondary education, higher education, technical education, pharmacy education. 4. The appellant has stated that the State Examination Board was established by the Gujarat Education Department in November, 1966 to arrange and conduct examinations; that this Board was declared 'autonomous' by a Notification No.1099/1081/N dated 26.10.1999 and 24.05.2000 of the Education Department in 1999 and has submitted a copy of the same; that the State Examination Board is registered under Societies Registration Act 1860. 5. The appellant sought ruling from the Gujarat Authority for Advance Ruling ['GAAR'] with respect to list....
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....URC for Education Department, School Inspector for Education Department, Environment Officer and Scientific Officer for GPCB etc. As these exams, being qualifying exams or exams, which results in the employment of the successful candidates, cannot, by any stretch of imagination be covered under the Entry at Sr. No. 17 (i.e. 'Education, including primary and secondary schools') under the list of functions entrusted to a Panchayat under Article 243G of the Constitution of India. Therefore, these services supplied by the appellant are not eligible for the benefit of exemption available at Sr. No. 5 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. 8. In addition, the GAAR observed that the State Examination Board, although established by the Education Department of the Government of Gujarat, is an autonomous body, established for the sole purpose of conducting various types of examinations and cannot, be considered as a State Education Board as the functions of the State Examination Board are completely different from that of a State Education Board. It was further observed that in order to be eligible to avail the benefit of exemption available under the aforemention....
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....nt case, the AAR stated that the activity of conducting examinations by the appellant squarely falls under Heading 9992 (which covers Education Services) and further stated that it appears that the 'State Examination Board' is a Board which is fully controlled by the Government of Gujarat through the Members of the said Board who are all appointed by the Government of Gujarat and are all State Government employees and therefore, the said Board appears to be a Government body wholly owned by the State Government of Gujarat. Thus, appellant submitted that 'State Examination Board' can be considered as "Governmental Authority" in order to avail benefit under Entry No. 5 of the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. 14. The appellant submitted that the term "in relation to" have been interpreted by the Supreme Court in the case of CCE V/s Rajasthan State Chemical Works 1999(55) ELT 444 (SC) and Union of India V/s Ahmedabad Electricity Co. Ltd. 2003(158) ELT 3(SC), wherein it has been held that such words widen and expand the scope, meaning and content of expressions. Further, appellant submitted that Hon'ble Supreme Court in case of M/s. Doypack Systems (P) Ltd....
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....clarified that the Central and State Educational Boards shall be treated as Educational Institution for the limited purpose of providing services by way of conduct of examination to the students" 19. The appellant referred Circular No. 151/07/2021-GST dated 17th June 2021 providing clarification in respect of taxability of various services supplied by Central and State Board such as National Board of Examination (NBE). As per the said Circular, NBE is construed as "Educational Institution" in so far as it provides services by way of conduct of examinations, including any entrance examination, to the students. While referring this Circular, the appellant submitted that M/s State Examinations Board should also be given the same recognition of "Educational Institution" as is given to NBE. 20. In addition, the appellant also referred to Judgement of Hon. Gujarat High Court in case of M/s Educational Initiatives Pvt Ltd v. Union of India (Special Civil Application No. 16476 of 2021) dated 18th February, 2022 for clarifying "examination" as an essential component of education. The relevant para of the Judgement is reproduced below: "18. We are of the view that the....
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....pellant further stated that various examinations conducted by the State Examination Board are recognised by the law, appellant can be covered under the definition of "Educational Institution". 21. Thereafter, the appellant classified the examinations into six different categories and submitted all relevant documents clarifying how various examinations are eligible to claim the exemption benefits under the Notification No.12/2017-Central Tax (Rate) dated 28.06.2017. Detailed submissions on taxability for conducting various exams are made as under: 21.1 Category - 1: 21.1.1 This category includes the following two exams: (i) Teacher Eligibility Test - 1 (TET-1) (ii) Teacher Eligibility Test - 2 (TET-2) Hereinafter, these exams are referred to as "TET". This examination is required for a person to be eligible for appointment as a teacher in primary school (i.e. in class I to VIII in a school). 21.1.2 Eligibility of a person to appear in TET: It is submitted that examination of TET -1 can be appeared by candidate who has completed 12thHigher Secondary (HSC) and Diploma in Elementary Education (D.El.Ed.). For examination ....
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....(b) Pass in the Teacher Eligibility Test (TET) to be conducted by the appropriate Government [i.e. State Government as per Section 2 (a) (ii) (A)] in accordance with the guidelines framed by the NCTE for the purpose." A Guidelines for conducting Teacher Eligibility Test (TET) under the RTE Act has been issued by NCTE on 11th February 2011. These guidelines state that for a person to be eligible for appointment as a teacher in classes I to VIII in any of the schools referred to in clause (n) of section 2 of RTE Act, he/she should pass the Teacher Eligibility Test (TET) as conducted by the appropriate Government in accordance with the Guidelines framed by NCTE. 21.1.6 Framing Syllabus and authorising State Examination Board for conducting TET: In exercise of the powers conferred by sub-section (1) of Section 23 of the RTE Act and in pursuance of the Guidelines by NCTE, the Education Department of Government of Gujarat has passed a resolution No. PRE-1111-711-K dated 27th April 2011 and framed the syllabus for TET and decided that TET shall be conducted by the State Examination Board, Gandhinagar. 21.1.7 On perusal of aforesaid details, the appellan....
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.... GH/SH/2/BMS-1109-1906-G dated 11th February, 2011 made "the Teachers and Head Masters of Registered Private Secondary and High Secondary Schools (Procedures for Selection) Rules, 2011" for the selection of teachers and head masters. Relevant provisions of the said rules are as under: "Rule 2. Definitions (e) "Teachers Aptitude Test (TAT)" means the teachers aptitude test conducted by the Gujarat Secondary and Higher Secondary Education Board, Gandhinagar. Rule 7. Eligibility for appointment: To be eligible for appointment as Teacher or Head Master, a candidate shall possess- (a) requisite educational qualifications and age in accordance with the provisions of the Gujarat Secondary Education regulations, 1974; and (b) ............." 21.2.4 Qualifications of Teachers and Head Masters: The Education Department, Government of Gujarat has passed the Secondary Education Regulations, 1974 and laid down the qualifications of head masters and teachers. Relevant regulation No. 20 is as under: 20. Qualifications of Head Masters, Teachers and members of nonteaching staff in a registered school: (1) No person sh....
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....rocedures for Selection) Rules, 2011 vide Notification No. GH/SH/3/BMS/1109/G dated 3rd February 2017 and substituted clause (e) of rule 2 as under: "(e) "Teachers Aptitude Test (TAT)" means the teachers aptitude test conducted by the State Examination Board, Gandhinagar." Further, the Education Department, Government of Gujarat has passed the Resolution No. BMS/1117/773/G dated 20th May, 2017 and framed the syllabus for TAT and decided that TAT shall be conducted by the State Examination Board, Gandhinagar. 21.2.6 Framing Syllabus and authorising State Examination Board for conducting HMAT: The Education Department, Government of Gujarat has passed the Resolution No. BMS/1117/2425/G dated 9th August, 2017 and framed the syllabus for HMAT and decided that HMAT shall be conducted by the State Examination Board, Gandhinagar. 21.2.7 On the basis of aforesaid details, the appellant submitted that the TAT / HMAT is a qualification recognised under the GSHSE Act. The State Examination Board provides services by way of conducting TAT / HMAT and also issues Marksheet to the successful candidates. Thus, it is submitted that the State Examination ....
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....: (see section 19 and 25) NORMS AND STANDARDS FOR A SCHOOL Sl. No. Item Norms and Standard 1 Numbers of teachers Admitted children Number of teacher (a) For first class to fifth class ................. Above One hundred and fifty children ............... 5 plus oneHead Teacher ............... (b) For sixth class to eighth class (3) Where admission of children is above hundred - ............... (i) A full time head-teacher; .................. 21.3.5 Framing Syllabus and authorising State Examination Board for conducting HTAT: It is submitted that the Education Department, Government of Gujarat has passed the Resolution No. PRE/1111/2834/K dated 18th January 2012 and framed the syllabus for HTAT and decided that HTAT shall be conducted by the State Examination Board, Gandhinagar. 21.3.6 On the basis of aforesaid details, the appellant submitted that post of Headteacher is created based on norms and standards as decided under the RTE Act, the qualification of HTAT is recognized under the GPE Act. The State Examination Board provides services by way of conducting HTAT and also issues Mark-....
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....for co-ordinated development of teacher education, which is reproduced as under: "Section 12 Functions of the Council.- It shall be the duty of the Council to take all such steps as it may think fit for ensuring planned and coordinated development of teacher education and for the determination and maintenance of standards for teacher education and for the purposes of performing its functions under this Act, the Council may - (a)..... ................ (e) lay down norms for any specified category of courses or trainings in teacher education including the minimum eligibility criteria for admission thereof and the method of selection of candidates, duration of the course, course contents and mode of curriculum; (f)................... (g) lay down standards in respect of examinations leading to teacher education qualifications, criteria for admission to such examinations and schemes of courses or training; ..................... (l) formulate schemes for various levels of teacher education and identify recognised institutions and set up new institutions for teacher development programmes; ......................
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......................." In exercise of the powers conferred by sub-section (2) of Section 32 of the NCTE Act, NCTE, vide the Notification No. F. 51-1/2014-NCTE (N&S), dated 28th November 2014, has made the National Council for Teacher Education (Recognition Norms and Procedure) Regulations, 2014. Regulation 9 of the said Regulations deals with norms and standards of various teacher education programmes. "9. Norms and standards.- Every institution offering the following programmes shown in the Table shall have to comply with norms and standards for various teachers education programmers as specified in Appendix 1 to Appendix 15: Sl.No. Norms and standards Appendix No. 1 Diploma in early childhood education programme leading to Diploma in Pre School Education (DPSE) [Formerly known as D.E.C.Ed or Pre-PTC] Appendix - 1 2 Elementary teacher education programme leading to Diploma in Elementary Education (D.El.Ed) [Formerly known as PTC] Appendix - 2 11 Diploma in arts education (Visual Arts) programme leading to Diploma in Arts Education (Visual Arts) [This programme includes programme relating to Painting, Sculpture, Applied A....
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....nation" can be considered as an essential component of education. Examinations included in this category (i.e. Diploma in Home Scienceand GCC Type Steno) are conducted by the State Examination Board. Therefore, the State Examination Board, being a Governmental Authority, is eligible to avail benefit of exemption as per entry 5 of the Notification No. 12/2017 - Central Tax Rate dated 28th June 2017. 21.6 Category - 6: 21.6.1 This category includes various Departmental Examinations. 21.6.2 It is submitted that services rendered by the State Examination Board in terms of Departmental Exam can be attained by the employees who are in service as Assistant Teacher in the Government Secondary & Higher Secondary School, Assistant Education Inspector in District Education Office, Assistant Education Inspector (Kelavani Nirikshak in District Panchayat); School Inspector, Block Resource Centres (BRCs), Cluster Resource Centres (CRCs), Urban Resource Centres(URCs) (in the Education Department); Forest guard (in the Forest Department), Jail Sipahi (in the Home Department), Clerk (in Paschim Gujarat Vij Co. Ltd. PGVCL), Stenographer (in Gujarat Industrial Development Co....
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.... Ruling dated 05.11.2020, has been filed within the prescribed time limit of 30 days from the date of communication of Ruling, as prescribed under section 100(2) of the CGST Act, 2017. 25. Virtual Hearing in the aforesaid appeal was held online before the Gujarat Appellate Authority for Advance Ruling on 15.04.2021. However, consequent upon the transfer and posting of the Chief Commissioner, State Goods and Services Tax, Ahmedabad vide Office Order dated 29/10/2021, there has been change in one of the two Members of the Gujarat Appellate Authority for Advance Ruling. The appellant was therefore offered a fresh opportunity of personal hearing. The appellant has vide his mail dated 4th January, 2022 requested for personal hearing in the matter. We have carefully heard the authorised representative of the appellant - CA. Devam S. Sheth through video conferencing and further considered the written submission made in the appeal memorandum and the additional submission made on 17th March 2022 & 29th March 2022as well as Advance Ruling given by the GAAR and other materials available on record. 26. First, we have considered the list of different examinations (along with the eligibili....
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....epartmental examination (given at Sr. No. 15 in the list given at para 26 above) by the appellant is considered outside the scope of section 7 of the CGST Act and therefore, no tax is leviable on such activity? 28. The first issue needs to be decided is as to whether the appellant is eligible for exemption as available under Sl. No. 66 of Notifications No. 12/2017 - Central Tax (Rate) dated 28.06.2017. On-going through the aforesaid entry of the said notification, it is found that the said notification has been amended vide notifications No.02/2018-Central Tax(Rate) dated 25.01.2018 and new item (aa) is inserted after item (a) in the entry in column (3) i.e. in Description of Services. After this amendment, entry at Sl. No.66 of Notification No.12/2017-Central Tax (Rate) dated 28.06.2017 reads as under: 29. In order to avail the benefit under Sl. No. 66 (aa), the services should be provided by an educational institution. The words "educational institution" are defined at Para 2 (y) of the said notification and reads as under: "(y) educational institution" means an institution providing services by way of, - (i) pre-school education and education up to higher....
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.... exams at Sr. No. 1 to 12 in the list given at para 26 above and made the following observations: Sr. No. Name of exam (Education course or programme) Regarding specific curriculum Recognizing the qualification by Law Assignment of task for conducting the exam Benefits of qualification 1. TET-1 As per the resolution No. PRE-1111-711-K dated 27th April 2011 passed by the Education Department, Government of Gujarat As per the provisions contained in the Right of Children to Free and Compulsory Education Act, 2009 As per the resolution No. PRE-1111-711-K dated 27th April 2011 passed by the Education Department, Government of Gujarat Eligibility test to appoint for the Job of Teacher in Primary school (Std. 1 to Std. 5). Eligibility test to appoint for the Job of Teacher in Upper Primary school (Std. 6 to Std. 8). 2. TET-2 3. TAT (Sec.) As per the Resolution No.BMS/1117/773/G dated 20^th May, 2017 passed by the Education Department, Government of Gujarat As per the provisions contained in the Gujarat Secondary and Higher Secondary Education Act, 1972 As per the Resolution No. BMS/1117/773/G dated 20^th May, 2017 passed by th....
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.....2017 for exams at Sr. No. 1 to 12 in the list given at para 26 above. 36. The second issue requires to be addressed is as to whether the appellant is eligible to claim exemption benefit under the Sl. No. 5 of the Notifications No. 12/2017 - Central Tax (Rate) dated 28.06.2017 for exams given at Sr. No. 13 and 14 in the list given at para 26 above. 37. In this regard, the appellant has submitted that they are eligible to avail the benefits of exemption under Sl. No. 5 of the Notification No. 12/2017 - Central Tax Rate dated 28th June 2017, due to the following reasons: (i) Diploma in Home Science and GCC Type Stenois for the students who have completed 12th standard; (ii) Students have to pursue the 3 years course conducted by the specific college and therefore such courses can be considered as education programme; (iii) Final examination is conducted by the appellant and in turn issues Certificate of Diploma along with marksheet to the successful students; (iv) As per the Judgement of Hon. Gujarat High Court in case of M/s Educational Initiatives Pvt Ltd v. Union of India (Special Civil Application No. 16476 of 2021) dated 18th February, 2....
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.... be it a school test, university examination, professional entrance examination or any other examination. Thus, examination can be considered as an essential component of education. 42. However, appellant failed to submit the details of specific curriculum for the Diploma in Home Science and GCC Type Steno. The appellant has not submitted any documents revealing the fact that qualification of these courses are recognised by any law for the time being in force. Primary and secondary schools education or education at higher secondary schools or colleges are always recognised by the law. These education programme i.e. Diploma in Home Science and GCC Type Steno, not being recognised by any law, cannot, by any stretch of imagination be considered as functions entrusted to a Panchayat under article 243G of the Constitution. 43. Thus, it can be seen from the above, that the appellant is not eligible to avail the benefit of exemption under Sl. No. 5 of Notifications No. 12/2017 - Central Tax (Rate) dated 28.06.2017 for exams at Sr. No. 13 to 14 in the list given at para 26 above. 44. The applicant submitted that conducting departmental examination (given at Sr. No. 15 in the list ....