TaxTMI 
TaxTMI 
2023 (8) TMI 1204
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....e law, facts or circumstances supporting the original advance ruling have changed. 4. In terms of Section 104 of the Act, where the Authority finds that advance ruling pronounced by it under sub-section (4) of Section 98 or under sub-section (1) of section 101 has been obtained by the applicant 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 applicant as if such ruling had never been made. 5. 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, a reference to the Central Goods and Service Tax Act would also mean a reference to the same provisions under the Tamil Nadu Goods and Service Tax Act. M/s The Indian Hume Pipe Company Limited, B2, 2nd Floor, New No. 361, Old No. 173, LE ROYAL RITEROOF, Lloyds Road, Gopalapuram, Chennai 600086 (hereinafter referred to as the Applicant&....
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....ontract as defined in clause 119 of section 2 of CGST Act, 2017 at 9% under CGST Act, thereby implying total GST at 18% (CGST - 9% + SGST - 9%)". This was subsequently amended vide Notification No. 20/2017-CT(Rate) dated 22.08.2017, whereby in Serial No.3 of the Table therein, item (iii) was inserted viz - "(iii) composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017, supplied to the Government, a local authority or a Governmental Authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation or alteration of, - (a)., (b) canal, dam or other irrigation works; (c) pipeline, conduit or plant for (i) water supply (ii) water treatment or (iii) sewerage treatment or disposal" to be taxed at 6% under CGST Act, thereby implying total GST at 12% (CGST -6% + SGST - 6%). Subsequently Notification No. 31/2017 dated 13.10.2017 was issued to amend Serial No.3(iii) viz - "Central Government, State Government, Union Territory, a Local Authority, a Governmental Authority or a Government Entity1'. At present, Notification No. 15/2021-CT(Rate) dated 18.11.2021 read with Notification No. 2....
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....in applicant's own case in Order No. 07/AAR/2020 dated 31.01.2020 and therefore, the applicable rate of tax will be 18% (CGST - 9% +SGST - 9%) on the supply of services by the applicant under GST Act, 2017. 3.3. The State tax officer did not furnish any report regarding pending proceedings against the applicant on the issues raised. Therefore, it is presumed that there are no pending proceedings against the applicant with the concerned authority on the issues raised. 4.1. We have carefully considered the submissions made by the applicant in the Advance Ruling application, additional submissions made during the personal hearing and the comments furnished by the jurisdictional Central Tax authority. The applicant has filed the ARA for determination of the liability to pay tax on any goods or services or both in respect of supply of services to M/s Tamilnadu Water Supply & Drainage Board, whether it is covered by Notification No. 15/2021-CT(Rate) dated 18.11.2021 read with Notification No. 22/2021-CT(Rate) dated 31.12.2021. 4.2. The question which needs to be answered is what is the rate of tax applicable on the supply of services by the applicant to M/s Tamilnadu Water S....
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....r (iii) sewerage treatment or disposal. Notification No. 11/ 2017 was further amended vide Notification No. 31/2017-Central Tax (Rate) dated October 13, 2017, wherein the words "Government, a local authority or Governmental authority" were replaced/ substituted by the words "Central Government, State Government, Union territory, a Local Authority, a Governmental Authority or a Government Entity". 5.3. The terms 'Government Authority' and 'Government Entity' were inserted by Notification No. 31/2017-CT(Rate) dated 13.10.2017 in Notification No. 11/2017-CT(Rate) as clauses (ix) & (x) of explanation in para 4 as follows:- (ix) Governmental Authority - means an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent, or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution. (x) Government Entity - means an authority or a board or any other body including a society, trust,....
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.... TWAD Board falls under the category of 'Local Authority'. Then it is imperative to see what is a 'Local Authority'. The term local authority as defined in Section 2(69) of the CGST Act, 2017 means- "Local authority" means - (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 (41 of 2006); (e) a Regional Council or a District Council constituted under the Sixth Schedule to the Constitution; (f) a Development Board constituted under article 371 [and article 371J] of the Constitution; or (g) a Regional Council constituted under article 371A of the Constitution. As defined above, the term local authority inter alia includes certain bodies / authorities, more specifically "any other authority....
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....uted by an Act of Tamil Nadu State Legislature called Tamil Nadu Water Supply and Drainage Board Act, 1970 with 100% contribution by way of Government and controlled by Government by way of appointing Directors of the TWAD Board entrusted with the development of Water Supply and Sewerage facilities in Municipalities and Panchayats in the State of Tamil Nadu, except Chennai Metropolitan Development. Thus M/s Tamil Nadu Water Supply and Drainage Board is a 'Governmental Authority' as defined under 2(zf) of the Notification No. 12/2017-CT(rate) as amended effective from 13.10.2017 and thereby supply is made to the 'Governmental Authority' by the Applicant. 5.9. Accordingly, M/s Tamil Nadu Water Supply and Drainage Board is a 'Governmental Authority' within the meaning of explanation 4(ix) of Notification No. 11/2017-CT(Rate) dated 28.06.2017, as amended, and the nature of service provided by the Applicant as narrated in para 2.3 supra, is covered under the entry serial no. 3(iii) of the Notification No. 11/2017-CT(Rate) dated 28.06.2017 till 31.12.2021. However, after omission of "a Governmental Authority or a Government Entity" from the description of servi....