TaxTMI 
TaxTMI 
2022 (6) TMI 1461
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....governmental organisations from time to time, * M/s. Jaipur Vidyut Vitran Nigam Limited (hereinafter referred to as "JVVNL" or "Jaipur Discom"), having their registered office at Vidyut Bhawan, Jan Path, Jyoti Nagar, Jaipur is a government of Rajasthan Undertaking and is engaged in distribution and supply of electricity in 12 districts of Rajasthan, namely Jaipur, Dausa, Alwar, Bharatpur, Dholpur, Kota, Bundi, Baran, Jhalawar, Sawai Madhopur, Tonk and Karauli. The Extracts of Annual Return (Mgt-9) from 20th Annual Reports filed for financial year 2014.2020 evidencing shareholding pattern of JVVNL is attached for reference. * JVVNL has invited tender for the work of operation and maintenance of identified 33/11 KY Grid Sub Stations against Dausa Lot-V and Bharatpur Lot-II through tender enquiry TN-483. That as per Tender Enquiry TN-483. JVVNL intends to enter into a contract with the contractor for operation and maintenance of identified 33/11 KV Grid Sub Stations at Dausa and Bharatpur districts of Rajasthan. The project would involve operation and maintenance of the identified GSS at defined locations for a period 2 years. Copy of such Tender Enquiry document is ....
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....ed person. The capacity of fuses for each feeder shall be prescribed by Assistant Engineer concerned. (B) Maintenance duties to be performed:- (i) The contractor shall check oil level of power Transformers leakage, if any in the power transformer checking air passage are free and also check the colour of the silica-gel. The contractor shall observe earthing of the transformer and he will inspect any crackness of flat of earthing of the dryness. He will intimate the position to JEN/AEN. (ii) The contractor shall carry out inspection & maintenance of circuit breaker as under-the contractor shall inspect switchgear premises & circuit breaker. He will clean the circuit breaker. He will inspect oil position of the circuit breaker and if any leakage is found he will intimate to JEN/AEN. Any unusual smell/noise observed in the OCB shall be intimated to JEN/AEN. He will also observe position of auxiliary fuses whether intact or not. The position shall be intimated to JEN/AEN. The contractor shall observe working order of indicating & measuring instrument whether they are in working order or not. The position/condition will be intimated to JEN/AEN. He will also ex....
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....f Central Tax (Rate) dated 28th June 2017 was amended to cover pure services provided to government entity under the ambit of exemption. * That in pursuance to the aforementioned changes in law, JVVNL has issued internal Circular No. GST Circular-2019 (2) dated 31st January 2019 to their offices notifying that they qualify under the definition of Government Entity under the provisions of GST law and are not liable to pay GST in respect of various services received or provided as mentioned in Notification No. 12/2017 Copy of such Circular is attached. * That a letter No. JPD/SE(TW)/XEN TW-III/D/6319 dated 31st December 2019 issued by Superintending Engineer (TW), JVVNL Jaipur to Senior AO Jaipur DISCOM mentions that no GSS belongs to Nagar Nigam Area in respect of TN 483 and thus no GST is payable on the same. Copy of such letter is enclosed herewith. * That in light of the obtaining facts and legal provisions, the applicant wishes to understand whether the pure services provided by them i.e, SAI ENT. to JVVNL are wholly exempt from Tax as provided under Serial number 3 of Notification No. 12/2017 Central Tax Kale fas amended] read with corresponding Notif....
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....icipality under article 243W of the Constitution. 1.2 Consideration of Jaipur Vidyut Vitran Nigam Limited (JVVNL) as Government Entity. 1.2.1 Government Entity has been defined under Notification Number 12/2017 as amended by 32/2017 under clause (zfa) of paragraph 2. The same has been reproduced below- (a) "Government Entity" means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government. with 90 per cent or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority. The functions entrusted to a Panchayat under the Eleventh Schedule to Article 243G of the Constitution are as under: (i) Agriculture, including agricultural extension. (ii) Land improvement, implementation of land reforms, land consolidation and soil conservation. (iii) Minor irrigation, water management and watershed development. (iv) Animal husbandry, dairying, and poultry. (v) Fisheries. ....
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....are covered under Article 243G of the constitution of India. 1.2.4 Jaipur Vidyut Vitran Nigam Limited satisfies both the conditions required to be classified as government entity: a. JVVNL is established by Rajasthan government with 90% or more control on the basis of the shareholding pattern as mentioned above. b. JVVNL is performing activities as entrusted under the Article 243G of the constitution. 1.3 Reliance placed on the recent Advance ruling in the case of M/s. ARG Electricals Private Limited 1.3.1 The Applicant relies on the ruling of Hon'ble Advance Ruling Authority of Rajasthan in the case of ARC Electricals Pvt. Ltd. ADVANCE RULING NO. RAJ AAR 2020-21-04 dated 14.05.2020. Copy of such advance ruling is attached for your ready reference. The same is in context to Ajmer Vidyut Vitran Nigam Limited, company created by the Government of Rajasthan with the principal objective of doing business of distribution and supply of electricity in 12 districts of Rajasthan. The Hon'ble AAR of Rajasthan has held that AVVNL is a government entity as defined in the clause (zfa) of paragraph 2 of notification number 12/2017 as amended b....
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....SOUGHT:- 1. Whether the service recipient i.e., M/s. Jaipur Vidyut Vitran Nigam Limited is a "Government Entity" as defined under clause (zfa) of para 2 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 as amended by Notification No. 32/2017 - Central Tax (Rate) dated 13.10.2017. 2. Whether services provided by the Applicant [i.e. SAI ENT.] in respect of work order No. TN-483 for Operation and Maintenance of identified 33/11 KV Grid Sub-Stations to Jaipur Vidyut Vitran Nigam Limited are wholly exempt vide serial number 3 of Notification No. 12/2017 - Central Tax (Rate) dated 28.06.2017 [as amended] C. PERSONAL HEARING In the matter personal hearing was granted to the applicant on 28.04.2022. Shri Rajesh Arora (Authorised Representative) of applicant appeared for PH. During the PH, he reiterated the submissions already made in the written application. He requested for early disposal of the application. D. COMMENTS OF THE JURISDICTIONAL OFFICER Comments received from the Deputy Commissioner, CGST Division-A, Jaipur vide letter dated 28.01.2022 are as under:- 1. In r/o 1st Question that "Whether the service recipient i....
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....ork related to Operation and Maintenance of identified 33/11 KV Grid Sub Stations (GSS) against Dausa Lot-V and Bharatpur Lot-II through tender enquiry TN-483 by the Superintending Engineer (TW), Jaipur Vidyut Vitran Nigam Limited (JVVNL), Jaipur. 3. In the present case, the applicant wants to understand whether the pure services provided by them (i.e. M/s. Sai Enterprises) to JVVNL are wholly exempt from Tax as provided under Serial number 3 of Notification No. 12/2017 Central Tax Rate [as amended] read with corresponding Notification issued under SGST Act, 2017. 4. We have gone through the Work Order No. JPD/SE(TW)/XEN(TW-III)/TN-483/D/5016 dated 31.10.2019. As per point No. 3 of the said work order dated 31.10.2019, the 'contract period' for operation & maintenance shall be One Year. 5. During the course of Personal Hearing (PH) in the matter, on being asked about the extension of period of said work order, the applicant has sought some time to submit the same. In response, the applicant submitted a copy of letter No. JPD/SE(TW)/XEN TW-III/D/2081 dated 01.10.2020 issued by the Superintending Engineer (TW), Jaipur Vidyut Vitran Nigam Limited, Ja....
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....s not eligible to avail the said exemption from tax. 10. Moreover, on gone through the facts of the case, we observe that applicant filed their application before the Rajasthan Authority for Advance Ruling (RAAR) on 16.11.2021 i.e. much later from the last date of extension of work order i.e. 30.04.2021. Thus, it finds that applicant filed Advance Ruling application dated 16.11.2021 before the Authority after expiry of a period almost six months from the date of expiry of aforesaid work order. In view of above, we find that the supplies mentioned in the agreement had been effected up to 30 April, 2021. We also find that the Applicant had applied for the Advance Ruling on 16.11.2021 in respect of availability of benefits of the Notification No. 12/2017-Central Tax (Rate) dated 28.06.2017. Since the Applicant has asked for ruling on the transactions effected prior to the date of filing of the application before the RAAR, we find it appropriate to visit the definition of the 'Advance Ruling' given under Section 95(a) of the CGST Act, 2017 which is reproduced as under:- "95. Definitions of Advance Ruling- In this Chapter, unless the context otherwise requires- ....