TaxTMI 
TaxTMI 
2022 (7) TMI 499
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.... M/s. Keshav Projects (hereinafter referred to as applicant), registered under the AP Goods & Services Tax Act, 2017. 3. Brief Facts of the case: 3.1 The applicant, M/s Keshav Projects is engaged in 'supply of manpower' for preparation and serving of spot electricity Bills to Andhra Pradesh Central Power Distribution Corporation Limited (APCPDCL) with 18% GST (SAC -00440410) as per the terms of the contract. Scope of work: Preparation and serving of spot electricity bills in consumer premises of LT Cat-I, Cat-II and Cat-IV (D&E) (excluding High Value and Agricultural Services) with GPRS enabled spot billing machines with/without IR/IRDA port readings in specified areas in (consisting of both urban and rural areas) of state of Andhra Pradesh. 3.2 Andhra Pradesh Central Power Distribution Limited (hereinafter referred to as APCPDCL) is a limited company set up by Government of Andhra Pradesh in which 99% of shares are held by Governor of Andhra Pradesh. The APCPDCL is responsible to engage in the business procurement, supply, and distribution of electricity in specified areas (both rural and urban) of the state of Andhra Pradesh. The applicant submits that the ....
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.... transformer wise and complete the work well within the schedule dates. 5.3 The applicant rendering supply of manpower for preparation and serving of spot Electricity bills services during implementation will ensure that the contracts are completed with least cost and no time overruns and ensure that quality and sustainable assets are sustained. 5.4 Details of the services rendered under contract agreement: 1. The spot billing agency shall procure adequate number of hand held computers and also stationary and other requirements for issue of spot bill. The bill format shall be as APCPDCL specifications. The agency shall keep adequate no of SBMs to meet contingency like repairs etc. 2. The spot billing agency shall appoint persons able to read different kinds of electrical meters and their status and sufficient knowledge to operate the spot billing machines. 3. The spot billing agency shall bill the services as per Schedule transformer wise and complete the work well within the schedule dates. 4. The spot billing agency has to visit the consumer premises where the service connection is located and metered and take reading with IR/IRDA port/ m....
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....utive Engineer/operation/Asst executive Engineer/Operation/Executive Engineer/Operation concerned shall also pursue the billing work from time to time. They shall ensure the spot billing is completed in the stipulated period to avoid unnecessary billing grievances and postponement of revenue. 14. Penalties : The APCPDCL reserves the right to levy penalties in the following cases in respect of spot billing activity. a) If the spot bills are not served to the consumers, penalty of Rs. 5/- for each service to be levied. b) No payment to spot billing bills served after the grace period of 2 days from the scheduled dates. c) Exceptional i.e., Door lock and RNF cases should not exceed 5% of the total services to be billed, if exceptional exceeds 5% of the total services to be billed, then the APCPDCL shall recover penalty for an amount equivalent to 5% of total bills of sub division d) No payment will be made for services with wrong readings, reading not furnished (08) and door lock (05) status in final exceptional given by spot billing agency. If any service continuously under these status for 3 months penalty will be levied @ Rs.10/- per suc....
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....f APCPDCL in discharge of the works assigned. 22. The spot billing agency shall ensure that the persons working in the agency shall be very courteous to the consumers and also shall not enter into any arguments with the consumer. He should be able to explain the system of billing in practice to the consumer whenever necessary. 23. If the quality of the service of the spot billing agency is not satisfactory continuously month after month and does not improve to establish the system of continuous spot billing in its real spirit the agreement is liable for termination with one month notice at any time during the subsistence of this agreement. 24. The bills are liable for TDS such as income tax and other taxes at the rates as per the enactments of Govt of India and Govt of Andhra Pradesh from time to time. 25. GST as per rules 26. If, in the view of superintending Engineer/operation /CRDA Circle/Amaravathi the execution of the work is felt to be slow and now not being done satisfactory as per the terms and conditions of the contract the superintending Engineer/Operation/Circle/Guntur reserves the right to terminate the work temporarily/ perm....
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....eligible for exemption from Central Goods and Service Tax and sl.No.3 (Chapter 99) of table mentioned in G.O.Ms. No.588 - (Andhra Pradesh) State Tax (Rate) dt: 12.12.2017 and accordingly eligible for exemption from Andhra Pradesh Goods and Service Tax. The applicant had filed an application in form GST ARA-01 dated 13.07.2021 by paying required amount of fee for seeking Advance Ruling on the following issues, as mentioned below: 6. Applicant's Interpretation of Law: 6.1 Whether the 'Supply of Manpower for preparation and serving of spot electricity bills services provided to the extent of such services provided in rural areas' services provided to Andhra Pradesh Central Power Distribution corporation limited (APCPDCL) can be termed as 'Pure Services' as referred in SI.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 SI.No.3 - (Chapter 99) of Table mentioned in G.O.Ms. No.588 - (Andhra Pradesh) State Tax (Rate) dated 12.12.2017 and accordingly eligible for exemption from Andhra Pradesh Goods and Service Tax. The relevan....
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....as 'Pure Services', provided they fulfill the following conditions: i) It excludes works contract service ii) It excludes other composite supplies involving supply of any goods iii) It is supply of services without involving any supply of goods The word 'Pure Services' referred in notification has nowhere been defined in the Act, Rules or notification themselves. The Notification also does not specifically name the services which are eligible for exemption and which are excluded. However, CBEC vide FAQ on Government Services, has clarified the scope of pure Services as under: Question 25: what is the scope of 'pure services' mentioned in the exemption notification no.12/2017 - Central Tax (Rate) dt: 28.06.2017? Answer: in the context of the language used in the notification, supply of services without involving any supply of goods would be treated as supply of pure services. For example, Supply of manpower for cleanliness of roads, public places, architect services, Consulting engineer services, advisory services, and like services provided by business entities not involving any supply of goods would be treated as suppl....
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....e definition of "Governmental Authority" as per the definitions given under Notification no.11/2017-- Central Tax (Rate) and Notification No.12/2017 - Central Tax (Rate) dated 28.06.2017: "Governmental Authority" means an authority or a board or any other body,- (i) Set up by Act of parliament or a State Legislature; or (ii) Established by any Government, With 90 percent or more participation by way of equity or control, to carry out any function entrusted to a Municipality under article 243W of the Constitution or a Panchayat under article 243G of the Constitution." The definition of 'Local Authority' as defined in section 2 (69) of CGST Act, 2017, is stated as under: "Local authority" means - (a) a "Panchayat" as defined in clause (d) of article 243 of the Constitution; (b) a " Municipality" as defined in clause (e) of article 243P of the Constitution; (c) a Municipal Committee, a Zilla Parishad, a District Board, and any other authority legally entitled to, or entrusted by the Central Government or any State Government with the control or management of a municipal or local fund; (d) a Can....
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....ra Pradesh (including rural electrification and supply of electricity in rural areas). • Maintenance of electrical lines in the specified areas of the state of Andhra Pradesh (both rural and urban areas). The APCPDCL has been entrusted for supply and distribution of electricity in the specified areas of state of Andhra Pradesh. Hence, the Supply of Manpower for preparation and serving of spot Electricity bills services provided by the applicant in rural areas of the state of Andhra Pradesh are in relation to function entrusted to a panchayat under Article 243G of the Constitution. Concluding the above, the supply of Manpower for preparation and serving of spot Electricity bills services, being a 'Pure Service', provided by the Applicant to APCPDCL being a 'Local Authority' would be eligible for exemption under entry 3 of the notification no 12/2017- Central Tax (Rate) dt:28.06.2017 as such activity qualify to be in relation to functions entrusted to panchayat under Article 243G of the Constitution. 6.5 Prayer of the Applicant: • The 'Supply of Manpower for preparation and Serving of Spot Electricity Bills Services" provided ....
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....e not covered under the definition of goods shall be categorized as pure services. In the instant case, the Scope of the supply as mentioned by the applicant includes supply of both goods and services. The excerpts of the contract as mentioned in 5.4 supra, is reproduced here under for the propose of clarity, "1. The spot billing agency shall procure adequate number of hand held computers and also stationary and other requirements for issue of spot bill. The bill format shall be as APCPDCL specifications. The agency shall keep adequate no of SBMs to meet contingency like repairs etc. 2. The spot billing agency shall appoint persons able to read different kinds of electrical meters and their status and sufficient knowledge to operate the spot billing machines." Thus the transaction covers the procurement of goods as well in addition to the services, disqualifying the present supply to be covered under the concept of 'pure services'. Hence the exemption clause under entry SI.No.3- (Chapter 99) of table mentioned in Notification No.12/2017- Central Tax (Rate) dated 28.06.2017 is not applicable for the instant case. In view of the above, the rest of the ....