TaxTMI 
TaxTMI 
2021 (11) TMI 1133
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....entral Government Department Such as: - S.No. Particulars Category Nature of Service 1. CHHATTISGARH RAJYA BEEJ EVAM KRISHI VIKAS NIGAM LIMITED State Government Undertaking To Provide Accountant 2. Social Welfare Department State Government Department To Provide Computer, Operator, Peon, Driver Etc. 3 C.G. State Road Development Department State Government Department To Provide Computer Operator, Peon, Driver Etc. 4. Labour Department State Government Department To Provide Computer Operator 5. C.G. Samvad State Government Department To Provide Computer Operator, Peon, Driver Etc. 2.2 That applicant is paying GST on whole amount which is received from department which includes salary, PF, ESIC to be paid for the man power being provided by him to the different State Government and Central Government Department and also the administrative Cost/Commission received by the applicant as a whole. 2.3 That the applicant seeks clarification that as per the Entry Number 3 of the Notification Number 12/2017 Central Tax (Rate) issued on 28/06/2017 which reads asunder: - 3 Chapter 99 Pure services (excluding ....
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....ed 24.09.2021, which has also been taken on record. 5. The legal position, analysis and discussion:-At the very outset, we would like to make it clear that the provisions for implementing the CGST Act and the Chhattisgarh GST Act, 2017 [hereinafter referred to as "the CGST Act and the CGGST Act") are similar and thus, unless a mention is specifically made to such dissimilar provisions, a reference to the CGST Act would also mean a reference to the same provisions under the CGGST Act, 2017. Now we sequentially proceed to discuss the issues involved in the ruling so sought by the applicant and the law as applicable in the present case. 5.1 The applicant is engaged in the service of providing man power supplies to different government department and undertaking such as the services of providing accountant, computer operator, peon. driver etc. 5.2 The applicant contends that the services provided by them falls under the Entry Number 3 of the Notification Number 12/2017 Central Tax (Rate) dated 28/06/2017 which stipulates Nil rate of tax for Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Governm....
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....Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. 5.5 To have a better appreciation of the issues involved, definitions of the above terms as provided under the CGST Act, 2017 are reproduced herein below: (i) As per Section-2(53) of the CGST, Act, 2017, "Government" means the Central Government. (ii) As per Section-2(53) of the CGGST, Act, 2017, "Government" means the State Government. (iii) As per Section-2(69) of the CGGST, Act, 2017, "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 Cantonment Board as defined in section 3 of the Cantonments Act, 2006; (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Developm....
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....function entrusted to a Municipality under article 243W of the Constitution For better appreciation, the functions entrusted to the panchayats under Article 243G of the Constitution of India are reproduced herein below: 1. Agriculture, including agricultural extension. 2. Land improvement, implementation of land reforms, land consolidation and soil conservation. 3. Minor irrigation, water management and watershed development. 4. Animal husbandry, dairying and poultry. 5. Fisheries. 6. Social forestry and farm forestry. 7. Minor forest produce. 8. Small scale industries, including food processing industries. 9. Khadi, village and cottage industries. 10. Rural housing. 11. Drinking water. 12. Fuel and fodder. 13. Roads, culverts, bridges, ferries, waterways and other means of communication. 14. Rural electrification, including distribution of electricity. 15. Non-conventional energy sources. 16. Poverty alleviation programme. 17. Education, including primary and secondary schools. 18. Technical training and vocational edu....
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....ding works contract service or other composite supplies involving any goods) should be provided, secondly, it should be provided to the Central Government, State Government or Union territory or local authority or a Governmental authority and thirdly it should be 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. Supply of man power as discussed above provided by business entities like the applicant, not involving any supply of goods would be treated as supply of pure services also the applicant has submitted that they are providing the same to Central / State Government. Now the decisive part is as to whether the said activity is 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. 5.10 The interpretation by the applicant that their activity/services of providing Man Power Service involving providing of Technical personal, Data Operator, House Keeping Service etc. to different State....
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.... be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. (ii) When there is ambiguity in exemption notification which is subject to strict interpretation, the benefit of such ambiguity cannot be claimed by the subject/assessee and it must be interpreted in favour of the Revenue. In Commissioner of Central Excise, Trichy v. Rukmani Pakkwell Traders ((2004) 11 SCC 801 = 2004 (165) E.L.T. 481 (S.C.)], the Apex Court held : "It is settled law that exemption notifications have to be strictly construed. They must be interpreted on their own wording. Wordings of some other notification are of no benefit in construing a particular notification" in Hari Khemu Gawali v. Deputy Commissioner of Police, Bombay and Another [AIR 1956 SC 559], a Constitution Bench of the Apex Court observed as under: "It has been repeatedly said by this Court that it is not safe to pronounce on the provisions of one Act with reference to decisions dealing with other Acts which may not be in pari materia." 5.12 Thus in view of the above discussions and judicial pronouncements and on the grounds as put forth by the applicant, we ....