TaxTMI 
TaxTMI 
2024 (1) TMI 563
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....uling, the expression 'GST Act' would be a common reference to both CGST Act and TGST Act. 3. It is observed that the queries raised by the applicant fall within the ambit of Section 97 of the GST ACT. The Applicant enclosed copies of challans as proof of payment of Rs. 5,000/- under SGST and Rs. 5,000/- under CGST towards the fee for Advance Ruling. The Applicant has declared that the questions raised in the application have neither been decided nor are pending before any authority under any provisions of the CGST/TGST Act' 2017. The application is, therefore, admitted after examining it and the records called for and after hearing the applicant as per section 98(2) of TGST Act' 2017. 4. BRIEF FACTS OF THE CASE: 4.1 M/s Ramagundam Fertilizers and Chemicals Limited (hereinafter referred to either as "Applicant" or "RFCL") was incorporated on 17 February 2015 as a public company to set up natural gas-based ammonia urea complex along with offsite & utility facilities at Ramagundam. RFCL is formed as a Joint Venture Company of various Public Sector Undertakings National Fertilizers Limited (NFL), Engineers India Limited (EIL) and Fertilizer Corporation of India Limited (FCIL)....
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....s or services or both, where the total value of such supply, under a contract, exceeds two lakh and fifty thousand rupees." 4.5 The Government of India Vide Notification No. 33/2017-CGST (Rate) has notified the following persons for operability of Clause (d) of Section 51(1) as detailed above: "a) an authority or a board or any other body, - a. set up by an Act of Parliament or a State Legislature; or b. established by any Government, with fifty-one percent or more participation by way of equity or control, to carry out any function. b) society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860) c) public sector undertakings" 4.6 Further, an additional proviso was inserted by the Government vide Notification No. 73/2018-CGST "Provided also that nothing in this notification shall apply to the supply of goods or services or both which takes place between one person to another person specified under clauses (a), (b), (c) and (d) of sub-section (1) of section 51 of the said Act." 4.7 Currently, the applicant is paying GST TDS on the pa....
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....(1) of section 51 of the said Act.". 3. The applicant has further submitted the following arguments to claim that it is established by Government and hence qualifies to be an establishment of Government under sec 51(1) of the CGST Act: • That Department of Fertilizers established by Ministry of Chemicals & Fertilizers which is serving as a parent/governing body for fertilizer companies formed by Central Government which has released "Handbook on notifications issued under Fertilizers policies". In the handbook, the Government has announced new investment policy (NIP-2012) to facilitate fresh investment in urea sector and to make India self-sufficient in the urea sector. • That Notification No. 12012/39/2011-FPP on New Investment Policy dated 02nd January 2013 was issued under the same, post approval of the Central Government. Extract of the relevant text from the notification and Handbook is provided below for y ease of reference. "I am directed to convey the approval of Government of India for New Investment Policy-2012 (NIP-2012) in order to facilitate fresh investments in urea sector. The salient features of the NIP-2012 are as under:- ....
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....ulative holdings Nature of the Entity National Fertilizer Limited 26 Central PSU Engineers India Limited 26 52 Central PSU Fertilizers Corporation of India Limited 11 63 Central PSU State Govt. of Telangana 11 74 State Govt. GAIL India Limited 14.3 87.3 Central PSU Foreign Investors 11.7 • That in continuation to the above, the Board of directors are appointed by the shareholders of the Applicant which are public sector undertakings and the State Government. Further, the operations and decisions in the regular cse of business are handled by the Board appointed by the stakeholders (PSUs and Government). The aforementioned public sector undertakings are owned and controlled by the Central and State Governments and thereby the Central and the State Governments, acting through the government companies, are in a position to indirectly control the management or policy decisions of the Applicant. • That the Applicant wishes to place emphasis on the word "Control". Control is not defined elsewhere in any of the GST Act; however, they would like to draw reference to sect....